HomeMy WebLinkAbout1981-120-09/01/1981-ADOPTING THE RESTATEMENT OF THE CITY OF FORT COLLINS' GENERAL EMPLOYEES RETIREMENT PLAN AND AUTHORIZ r
RESOLUTION 81-120
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE RESTATEMENT OF THE CITY OF FORT COLLINS'
GENERAL EMPLOYEES RETIREMENT PLAN AND AUTHORIZING
THE CITY TO CONTRIBUTE TO THE ICMA RETIREMENT PLAN
ON BEHALF OF ITS CAREER EMPLOYEES
s
WHEREAS, in December of 1980, the City hired A S Hansen Company as
consultant to prepare a restatement of the City's general employees retire-
ment plan, and
WHEREAS, A S Hansen Company has proposed a restatement of the City's
general employee retirement plan recommending the following changes,
to-wit
1) An increase in the basic retirement benefit formula
2) The addition of an automatic spouses benefit for those employees
who were eligible for retirement at time of death
3) The provision of retirement benefits to permanent part-time
employees
4) The provision of an annual 5% ad hoc cost of living increase to
those members presently retired and their beneficiaries
5) The incorporation of the provisions necessary for I R S approval
of said plan
P
6) The provision of increased long-term disability benefits
7) An early retirement eligibility requirement consistent with
vesting provisions of the plan
WHEREAS, in addition to the aforementioned plan, the City wishes to
make available to career employees an optional retirement plan whereby the
City will contribute up to 3% of said career employee's salary (equal to
said employee's contribution) to the I C M A retirement plan, and
WHEREAS, the General Employees Retirement Committee, the Pension Task
Force and City staff have reviewed said restatement of the City's General
Employee Retirement Plan and optional retirement plan and recommended
approval of the same
y� NOW, THEREFORE, BE IT RESOIVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the restatement of the City of Fort Collins ' General Employee
Retirement Plan as submitted and prepared by A S Hansen Company be, and
the same hereby is adopted
BE IT FURTHER RESOLVED that effective January 1, 1982, the City be,
and it hereby is, authorized to contribute up to 3% of a career employee's
salary (equal to said career employee's contribution) to the I C M A
retirement plan
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins held this 1st day of September—, 1981
Mayor
ATTEST
City Clerk
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C I T Y O F F 0 R T C 0 L L I N S
G E N E R A L E M P L O Y E E S
R E T I R E M E N T P L A N
As Restated Effective September 1, 1981
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City of Fort Collins General Employees Retirement Plan
TABLE OF CONTENTS
Page No
ARTICLE I Purpose I-1
ARTICLE II Definitions II-1
1 Name II-1
2 Definitions II-1
3 Construction II-3
ARTICLE III Membership III-1
1 Employees on January 1, 1971 III-1
2 Employees Hired After January 1, 1971 III-1
3 Termination III-1
4 Withdrawal III-1
ARTICLE IV Credited Service IV-1
1 Credited Service IV-1
2 Break in Service IV-1
3 Effect of Other Plans IV-2
4 Miscellaneous IV-2
ARTICLE V Retirement Dates V-1
1 Normal Retirement V-1
2 Early Retirement V-1
3 Delayed Retirement V-1
4 Disability Retirement V-1
5 Retirement Date V-2
ARTICLE VI Retirement Benefits VI-1
1 Normal or Delayed Retirement VI-1
2 Early Retirement VI-1
3 Disability Retirement VI-1
4 Payment of Benefits VI-1
5 Minimum Periodic Payment VI-2
6 Accrued Credits and Vested Benefits
Under the Previous Plan Preserved VI-2
7 Increased Benefits for Retired
Members of the Previous Plan VI-2
ARTICLE VII Optional Benefits VII-1
1 General VII-1
2 100/ Joint and Survivor Benefit VII-1
3 50/ Joint and Survivor Benefit VII-1
4 120 Months Certain and Life Benefit VII-2
5 Beneficiary VII-2
Y
Page No
ARTICLE VIII Death Benefits VIII-1
1 Death of an Active Member or Vested
Member Prior to Normal Retirement Date VIII-1
2 Death of an Active Member Between
Normal and Delayed Retirement Dates VIII-1
3 Death of a Retired Member VIII-1
4 Uniform Simultaneous Death Act VIII-2
ARTICLE IX Severance Benefits IX-1
1 Coverage IX-1
2 Six or More Years of Service IX-1
ARTICLE X Contributions X-1
1 Member Contributions X-1
2 City Contributions X-1
3 Application of Forfeitures X-1
ARTICLE XI Administration of the Plan XI-1
1 Retirement Committee XI-1
2 Management of the Plan XI-1
3 Miscellaneous XI-2
ARTICLE XII Method of Funding XII-1
1 Funding XII-1
2 Assets XII-1
3 Duties of the Funding Agent XII-1
4 Investment Powers XII-2
ARTICLE XIII Retirement Benefits and Rights Inalienable XIII-1
1 Inalienability XIII-1
2 Bankruptcy XIII-1
ARTICLE XIV Modification or Termination of Plan XIV-1
1 Expectation XIV-1
2 Amendment XIV-1
3 Approval Under the Internal Revenue Code XIV-1
4 Discontinuance XIV-2
5 Termination XIV-2
6 Distribution XIV-2
ARTICLE XV Benefit Restrictions on Early Termination XV-1
1 Restrictions XV-1
2 Members Affected by Section 1 XV-2
3 Amendment of Plan XV-2
ARTICLE XVI Limitations XVI-1
1 Reemployment of Former Members XVI-1
2 Reemployment of Retired Members XVI-1
3 Limitation of Benefits XVI-1
4 Consolidation or Merger XVI-2
ARTICLE I
Purpose
Effective as of September 1, 1981, the City Council of the City of Fort
Collins adopted the amended and restated Plan, as set forth herein, to
continue and replace the Plan previously in effect The Plan and Retirement
Fund are intended to meet the requirements of Sections 401(a) and 501(a) of
the Internal Revenue Code of 1954
The Plan and the separate related Retirement Fund forming a part hereof
were established and shall be maintained for the exclusive benefit of the
eligible employees of the City of Fort Collins and their beneficiaries No
part of the Retirement Fund can ever revert to the City except as hereinafter
provided, or be used for or diverted to purposes other than the exclusive
benefit of the employees of the City and their beneficiaries
This amendment and restatement of the Plan shall not, in any way, affect
the rights of former Employees who participated in said Plan and who either
retired or otherwise terminated their employment prior to September 1, 1981
The rights, if any, of such former Employees and of their beneficiaries and
the amounts of their benefits, if any, shall continue to be governed by the
provisions of the Plan as it was in effect on August 31, 1981, or the date, if
earlier, of their retirement or termination of employment, unless specifi-
cally provided for otherwise herein, or as the result of future amendments to
this restated Plan
I-1
ARTICLE II
Definitions
Section 1 Name The retirement income plan as set forth in this
Ordinance shall be known as the City of Fort Collins General Employees
Retirement Plan and is hereinafter referred to as the Plan
Section 2 Definitions Unless the context otherwise requires, the
definitions and general provisions contained in this section govern the
construction of this restated Plan
(a) "Accrued Benefit" means the benefit determined under
the Plan expressed in the form of a monthly single life annuity,
commencing at Normal Retirement Date
(b) "Actuarial Equivalent" means a benefit of equal value
when computed upon the basis of the mortality, interest and
other tables last adopted by the Retirement Committee for this
purpose
(c) "Beneficiary" means and includes the Member's estate,
his dependents, persons who are the natural objects of the
Member' s bounty and any persons designated by the Member to
share in the benefits of the Plan after the death of the
Member
(d) "City" shall mean the City of Fort Collins, State of
Colorado
(e) "City Council" shall mean the City Council of the City
(f) "Committee" or "Retirement Committee" means the
Committee appointed by the City Council and charged with the
general administration of the Plan
(g) "Compensation" means the total cash remuneration paid
to an employee for a calendar year by the City for personal
services as reported on the employee's income tax withholding
statement or statements (Form W-2, or its subsequent equiva-
lent) , excluding bonuses, extra pay, compensatory time, overtime
pay, lump-sum payments for accrued vacation time, worker's
compensation and any contribution by the City under this Plan,
or the like, but including any deferred compensation used to
purchase nonforfeitable annuities qualified under Section 403(b)
of the Internal Revenue Code
II-1
(h) "Credited Service" means the period of service
rendered by an employee as a Member, for which credit is
allowed Credited Service will cease when a Member' s service as
an Employee terminates
(i) "Disability" means a physical or mental condition
which, in the ,judgment of the Federal Social Security
Administration entitles the Member to receive disability
benefits under Title II of the Federal Social Security Act, for
the period of time from his Disability (after any waiting period
required under the Act) continuously until his Normal Retirement
Date
(j) "Effective Date of this Plan" means January 1, 1971
This restated Plan is effective as of September 1, 1981
W "Employee" means any person who is hired to fill a
permanent classified position as defined by the City Personnel
Rules and Regulations, excluding Police Officers and paid
Firefighters
(1) "Final Average Monthly Compensation" means 1/60th of a
Member's average compensation during the 60 consecutive full
calendar months of Credited Service out of his 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, his Final
Average Monthly Compensation shall be 1/60th of his average
compensation during 60 successive full calendar months during
the last 120 calendar months of Credited Service that would
yield the highest average, or his Average Monthly Compensation
during all full calendar months of Credited Service, if less
than 60 months
(m) "Funding Agent" means any insurance company or trustee
appointed by the Retirement Committee as provided in
Article XII, or the Retirement Committee, if no designation has
been made
(n) "Funding Agreement" means the insurance contract with
the insurance company or the trust agreement with the trustee as
approved by the Retirement Committee for the purpose of the
investment and management of Retirement Fund assets
(o) "Insurance Company" mean any insurance company or
companies appointed by the City Council as provided in
Article XII
(p) "Member" means any person included in the membership
of this Plan as provided in Article III hereof
(q) "Plan Year" means the calendar year
II-2
(r) "Retired Member" means a former member whose
employment terminated by reason of retirement or Disability and
who is receiving or is entitled to receive, or whose Beneficiary
or estate is entitled to receive, benefits under this Plan
(s) "Retirement Benefit" or "Pension" means any retirement
benefit provided for in Article VI hereof
(t) "Retirement Fund" or "Fund" means the "City of Fort
Collins General Employees Retirement Fund," maintained by the
Retirement Committee or in accordance with the terms of any
Funding Agreement, as from time to time amended, which
constitutes a part of this Plan
(u) "Service" shall mean service rendered as an Employee
of the City
(v) "Trustee" shall mean any qualified and acting Trustee
appointed by the City Council as Named Fiduciary for the
investment and management of Plan assets
(w) "Vested Member" means a former Member whose Credited
Service has terminated by reason other than retirement or
Disability and who is entitled to receive, or whose Beneficiary
or estate is entitled to receive, benefits under this Plan A
Vested Member shall become a Retired Member upon actual
retirement
Section 3 Construction The masculine gender, where appearing in the
Plan, shall be deemed to include the feminine gender and words used in the
singular shall include the plural unless the context clearly indicates to the
contrary Words such as "hereof," "herein," and "hereunder," shall refer to
the entire Plan, not to any particular provision or section The Plan and
Trust shall each form a part of the other by reference and terms shall be used
therein interchangeably
H-3
ARTICLE III
Membership
Section 1 Employees on January 1, 1971 Every person who was an
Employee of the City of Fort Collins on January 1, 1971 became a Member in the
Plan on such date
Section 2 Employees Hired On or After January 1, 1971 Each Employee
of the City of Fort Collins hired on or after January 1, 1971, shall become a
Member in the Plan on his date of employment
Section 3 Termination Membership of any Member shall terminate if
and when he shall cease to be an Employee for any reason, except as provided
in Article IV, Section 2
Section 4 Withdrawal Unless otherwise provided herein, once an
Employee has become a Member of the Plan, he may not withdraw from membership
in the Plan unless he ceases to be an Employee
Section 5 Exceptions Any Employee who is covered by an employment
contract, a Department Head, an Assistant City Manager or an Assistant City
Attorney may, if designated by the City Manager, elect to participate in the
ICMA Retirement Program in lieu of participation in this Plan
III-1
ARTICLE IV
Credited Service
Section 1 Credited Service A Member's Credited Service shall be
used to determine his Accrued Benefit and eligibility for benefits under the
Plan A Member' s Credited Service is the elapsed time period from his date of
employment with the City, as an Employee, to his date of termination of such
employment, except as limited within this section
Section 2 Breaks in Service A Member shall incur a Break in Service
if his service as an Employee terminates and he does not return to service as
an Employee within twelve (12) months of the date such service terminated
The Retirement Committee shall have the power to determine when a Break in
Service shall have occurred, and such determination shall be made in a
nondiscriminatory manner However, the following shall not be considered as a
Break in Service
(a) A temporary lay-off because of an illness or for
purposes of economy, suspension, or dismissal, followed by
reinstatement, reemployment or reappointment within one year
(b) A formal leave of absence followed by reinstatement,
reemployment or reappointment within 30 days after termination
of the leave of absence
(c) A leave of absence on account of entering into the
military service of the United States, followed by a return to
employment as an Employee of the City within 90 days after the
time when a discharge from such military service was first
available to such member
Credited Service shall not include the time during which a Member is not
in active service of the City for any of the reasons stated in this sub-
section 2
IV-1
Upon incurring a Break in Service, a Member shall lose all his prior
Credited Service If a Member returns to service as an Employee prior to
incurring a Break in Service and repays the Fund, within twelve (12) months of
rehire, any amounts received because of his prior termination, with interest
at the rate used to determine an Actuarial Equivalent from the date received
to the date of repayment, the prior Credited Service for which such amounts
were received shall be restored
Section 3 Effect of Other Plans Credited Service shall not include
any period on the basis of which a retirement benefit is payable under any
other defined benefit retirement or pension plan to which the City made
contributions, other than benefits payable under the Federal Social Security
Act Credited Service shall not include any period of time during which an
Employee participates in the ICMA Retirement Plan in lieu of this Plan as
provided in Section 5 of Article III
Section 4 Miscellaneous No period of Credited Service shall be
deemed to be increased or extended by overtime In determining all Credited
Service, service for fractional years shall be allowed on the basis of 1/12th
year for each full month of employment as an Employee
IV-2
ARTICLE V
Retirement Dates
Section 1 Normal Retirement The Normal Retirement Date of a Member
shall be his 65th birthday upon which date he shall become fully vested in his
Accrued Benefit For purposes of the commencement of payment of a Retirement
Benefit, Normal Retirement Date shall mean the first of the month coincident
with or following a Member's 65th birthday
Section 2 Early Retirement A Member or Vested Member who has
attained the age of 55 years and has completed at least six years of Credited
Service may elect to retire as of the first day of any calendar month, which
shall not be less than 30 nor more than 90 days after the filing of written
notification with the Retirement Committee
Section 3 Delayed Retirement A Member may continue in the
employment of the City after his Normal Retirement Date If the retirement of
a Member is delayed under this Article V, Section 3, his "Delayed Retirement
Date" shall be the first day of the month, coincident with or next following
the date of his actual retirement As a condition precedent to continuance in
employment beyond the Normal Retirement Date, the Member shall file with the
Retirement Committee a written designation of a Beneficiary, whether or not
the Member elects one of the optional benefits in accordance with
Article VII
Section 4 Disability Retirement If it is established by the
Retirement Committee that a Member has become Totally and Permanently Disabled
then such Member shall be eligible to receive a Retirement Benefit commencing
V-1
one month after his Disability Retirement Date For purposes of this Plan, a
Member shall be deemed totally and permanently disabled upon a determination
by the Social Security Administraton that he is entitled to Social Security
disability benefits, provided that he is eligible for and receiving such
disability benefits under the Social Security Act (after any waiting period
required under the Act)
If, prior to age 65, a Member's Social Security disability benefits
terminate, he will be considered to be recovered from Disability If a Member
returns to service with the City as an Employee upon recovery from Disability
prior to age 65, his Credited Service will include the period of his
Disability If a Member whose Disability terminates before age 65 is not
reemployed as an Employee by the City, his Pension payable, if any, will be
determined by his Credited Service and his Final Average Monthly Compensation
on his Disability Retirement Date If a Member recovers from Disability after
his 65th birthday and he does not return to employment with the City, his
Disability Pension shall continue as if his Disability had continued
Section 5 Retirement Date A Member' s "Retirement Date" shall be on
his Normal Retirement Date, his Early Retirement Date, his Delayed Retirement
Date, or his Disability Retirement Date, whichever is applicable
V-2
ARTICLE VI
Retirement Benefits
Section 1 Normal or Delayed Retirement Upon retirement at or after
his Normal Retirement Date, each Retired Member shall receive a monthly
Retirement Benefit equal to 1-1/2/ of the Member's Final Average Monthly
Compensation multiplied by the total number of years of the Member's Credited
Service
Section 2 Early Retirement A Member or Vested Member, eligible for
early retirement and retiring prior to his Normal Retirement Date, shall be
entitled to a reduced Retirement Benefit which shall be his Vested Accrued
Benefit on his Early Retirement Date, reduced by 1/180 for each of the first
60 months and 1/360 for each additional month by which the payments commence
prior to the first of the month following his Normal Retirement Date
Section 3 Disability Retirement The Disability Retirement benefit
of a Member eligible therefor shall be his Accrued Benefit on his Disability
Retirement Date
Section 4 Payment of Benefits The basic monthly Retirement Benefit,
computed as set forth above, shall be paid in equal monthly payments
commencing on the first day of the month on or after the Retirement Date, and
continuing at monthly intervals for the Retired Member's lifetime thereafter
Retirement Benefits shall not be paid to any Retired Member during any
period of employment subsequent to his actual retirement date during which he
is receiving Compensation and is considered an Employee of the City Monthly
payments shall commence on the first of the month coin- cadent with or next
following such Retired Member' s subsequent termination of
VI-1
-service with the City as an Employee and shall be determined_pursuant to
Section 2 of Article XVI herein
Section 5 Minimum Periodic Payment If the amount of the monthly
Retirement Benefit payable to a Retired Member is less than $50, the
Retirement Committee, in its discretion, may make Actuarially Equivalent
Retirement Benefit payments quarterly, semi-annually, annually or in a single
sum
Section 6 Accrued Credits and Vested Benefits Under the Previous Plan
Preserved The restatement of the Previous Plan by this Plan shall not
operate to exclude, diminish, limit or restrict the payment or continuation of
payment of benefits accrued as of August 31, 1981 The amount of such
Previous Plan benefits, if any, in the course of payment by the Funding Agent
under said Previous Plan, to any person on August 31, 1981, 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 Section 7 of this Article VI
The eligibility for, and amount of, any benefit of any kind, payable
commencing after August 31, 1981 under this Plan to or for any person who was
a Member of the Previous Plan and who became a Member of this restated Plan as
of September 1, 1981, shall be determined under the provisions of this Plan
Section 7 Increased Benefits for Retired Members and Beneficiaries of
the Previous Plan Effective September 1, 1981, the monthly benefits to
current Retired Members and Beneficiaries of the Previous Plan whose payments
commenced prior to September 1, 1981, shall be increased, effective
September 1, 1981, as follows
VI-2
Year of
Retirement Percentage
Date Increase
1981 5%
1980 10
1979 15
1978 20
1977 25
1976 30
1975 35
1974 40
1973 45
1972 50
1971 55
If a benefit is being paid to a Beneficiary or Contingent Annuitant, the
Year of Retirement Date for purposes of using the above table shall be the
initial Retirement Date of the Member or the date the Beneficiary's benefit
commenced, if no benefit payments were made to the Member
VI-3
ARTICLE VII
Optional Benefits
Section 1 General Subject to such uniform rules and regulations as
the Retirement Committee may prescribe, a Member or Vested Member may, in lieu
of the basic Retirement Benefits provided in Article VI, elect one of the
following forms of Retirement Benefits which shall be the Actuarial Equivalent
of the benefit to which he would otherwise be entitled The Member or Vested
Member must make any election of an optional benefit in writing, and such
election must be filed with the Retirement Committee at least 30 days prior to
the due date of the first payment of Retirement Benefits under the Plan The
election of an option may be changed at any time prior to 30 days preceding
the due date of the first payment of Retirement Benefits under the Plan
However, an optional form of income may not be elected unless the value of the
payments expected to be paid to the Member exceeds 50/ of the value of the
total benefits to be paid under such optional form
Section 2 100/ Joint and Survivor Benefit The Member may elect a
100/ Joint and Survivor Benefit which provides reduced monthly Retirement
Benefit payments during the Retired Member's life, and, upon his death after
retirement, continues payments in the same reduced amount to a designated
Beneficiary during the life of such Beneficiary
Section 3 50/ Joint and Survivor Benefit The Member may elect a 50/
Joint and Survivor Benefit which provides reduced monthly Retirement Benefit
payments during the Retired Member' s life, and, upon his death after retire-
ment, continues payments in an amount equal to one-half of the amount of such
VII-1
reduced payment to the designated Beneficiary during the life of such
Beneficiary
Section 4 120 Months Certain and Life Benefit The Member may elect
a 120 Months Certain and Life Benefit which provides reduced monthly
Retirement Benefit payments during the Retired Member's life, and in the event
he dies prior to receiving 120 monthly payments, the same reduced amount shall
be continued to his Beneficiary until a total of 120 monthly payments have
been made
Section 5 Beneficiary The designated Beneficiary for optional
benefits may be the spouse of the Member or Vested Member, if living, at the
time the optional Retirement Benefit is elected, or any of his children,
either natural or adopted, parents, brothers or sisters If the designated
Beneficiary dies prior to the due date of the first payment of Retirement
Benefits under the Plan and no new Beneficiary has been designated, Retirement
Benefits shall be paid as though no optional benefit had been elected
VII-2
ARTICLE VIII
Death Benefits
Section 1 Death of an Active Member or Vested Member Prior to Normal
Retirement Date In the event a Member, who has attained age 55 and has
completed at least six years of Credited Service, and who is actively employed
by the City or whose employment terminated after having completed such age and
service requirements, dies prior to his Normal Retirement Date and prior to
the commencement of his Retirement Benefit, a monthly benefit for life shall
be paid to his surviving spouse, if any, in an amount equal to 50/ of the
Member's Vested Accrued Benefit on his date of death If however, the
Member' s spouse is more than five years younger than the Member, the monthly
benefit to his spouse shall be reduced actuarially to reflect the difference
in age as being more than five years
Section 2 Death of an Active Member Between Normal and Delayed
Retirement Dates In the event a Member continues in City employment after
his Normal Retirement Date, and dies before actually retiring, then he shall
be deemed to have retired on the first day of the calendar month in which he
dies If no other form of payment has been elected, the Member shall be
deemed to have elected the 100/ Joint and Survivor Optional Benefit provided
for in Article VII, Section 2, and payments shall be made in accordance with
this option to the Beneficiary designated by the Member
Section 3 Death of a Retired Member In the event a Retired Member
dies while receiving Retirement Benefit payments, his death benefit, if any,
will be determined by the form of Retirement Benefit being paid
VIII-1
Section 4 Uniform Simultaneous Death Act The provisions of any
State law providing for the distribution of estates under the Uniform
Simultaneous Death Act, when applicable, shall govern the distributon of money
payable under this Plan
VIII-2
ARTICLE IX
Severance Benefits
Section 1 Coverage Benefits shall be paid to a Member under this
Article if his employment terminates for reasons other than retirement,
disability or death
Section 2 Six or More Years of Service In the event a Member' s
employment terminates prior to a his Normal Retirement Date, and he has six or
more years of Credited Service, he shall become a Vested Member A Vested
Member shall be entitled to a deferred Retirement Benefit which shall be the
vested portion (as shown in the table below) of his Accrued Benefit on the
date of the termination of his Credited Service
Completed Years Percent of Accrued
Of Credited Service Benefit Vested
Less than 6 0/
6 20/
7 4 0/
8 60/.
9 80%
10 or more 100/
Such deferred Retirement Benefit shall be payable at the Vested Member' s
Normal Retirement Date
If the deferred Retirement Benefit to which a Vested Member will be
entitled at his Normal Retirement Date is less than $SO per month, the Vested
Member may be paid, as of the date his employment terminates, a single sum
equal to the Actuarial Equivalent of such deferred Retirement Benefit, in lieu
of all other benefits under the Plan
IX-1
In lieu of receiving the deferred Retirement Benefit upon his Normal
Retirement Date, the Vested Member may elect to receive a reduced Retirement
Benefit beginning upon the first of any month subsequent to his attainment of
age 55 The reduction shall be 1/180 for each of the first 60 months and
1/360 for each additional month by which payments commence prior to the first
of the month following his Normal Retirement Date
IX-2
ARTICLE X
Contributions
Section 1 Member Contributions Members are not required or
permitted to make contributions under this Plan
Section 2 City Contributions The City shall make contributions to
the Fund adequate to finance the benefits provided for the Plan on a sound
actuarial basis The required contributions to the Plan shall be determined
by a competent actuary The City expects to continue such contributions to
the Plan, but assumes no responsibility to do so and reserves the right to
suspend or to reduce contributions at any time upon appropriate action by an
amendment to the Plan by the City Council
Notwithstanding any other provisions hereof or any amendment hereto to the
contrary, at no time shall any assets of the Fund revert to, or be recoverable
by, the City or be used for, or diverted to, purposes other than for the
exclusive benefit of Members, Retired Members, Vested Members, or their
Beneficiaries under the Plan except such funds which upon termination of the
Plan are in excess of the amount required to fully fund the Plan and are due
to erroneous actuarial assumptions
Section 3 Application of Forfeitures Any amount forfeited because
of termination of employment of a Member prior to his having acquired a fully
vested right to Retirement Benefits, because of death of any Member or for any
other reason, shall not be applied to increase the benefits provided by the
Plan unless such benefits are increased by appropriate amendment, as provided
in Article XIV
X-1
ARTICLE XI
Administration of the Plan
Section 1 Retirement Committee A Retirement Committee composed of
five members shall administer the Plan One of said members shall be the
Director of Finance, who shall keep all records and minutes of meetings
Three of said members, other than the Director of Finance, shall be employees
who are covered by the Plan All members of the Committee, other than the
Director of Finance, shall be appointed by the City Council to serve at its
pleasure and for overlapping terms designated by the City Council All
members of the Committee who are not employees of the City shall be tax-paying
electors of the City
A majority of the five members of the Committee shall constitute a
quorum All actions taken by the Committee shall be approved by a maljority
vote of all of the members of the Committee present
No member of the Committee shall receive compensation for his service on
the Committee but a member may be reimbursed for reasonable expenses incurred
in connection with his duties as a member of the Committee
Section 2 Management of the Plan The Retirement Committee shall
have all powers necessary to effect the management and administration of the
Plan in accordance with its terms, including, but not limited to, the
following
(a) To designate a Funding Agent, which may be the
Retirement Committee, to manage the Retirement Fund
(b) To establish rules and regulations for the
administration of the Plan, for managing and discharging the
duties of the Committee, for the Committee's own government and
procedure in so doing, and for the preservation and the
protection of the Funds
XI-1
(c) To interpret the provisions of the Plan and to
determine any and all questions arising under the Plan or in
connection with the administration thereof A record of such
action and all other matters properly coming before the
Committee shall be kept and preserved
(d) To determine all considerations affecting the
eligibility of any employee to be or become a Member of the
Plan
(e) To determine the Credited Service of any Member and to
compute the amount of Retirement Benefit, or other sum, payable
under the Plan to any person
(f) To authorize and direct all disbursements of
Retirement Benefits and other sums under the Plan
(g) With the advice of its actuary to adopt, from time to
time for purposes of the Plan, such mortality and other tables
as it may deem necessary or appropriate for the operation of the
Plan
(h) To make or arrange for valuations and appraisals of
Fund assets held under the Plan, and, with the advice of the
actuary, to determine the liabilities of the Plan
(i) To hold assets of the Plan in a special account
entitled "Retirement Plan Fund," and invest and reinvest the
same and to make such withdrawals therefrom as are authorized by
the Plan for the payment of Retirement Benefits and the expenses
of the Committee and the members thereof
(j) To maintain such records and accounts and to render
such financial statements and reports as may be required by the
City Council
(k) To authorize one or more members of the Retirement
Committee to sign all legal documents and reports on behalf of
the Retirement Committee
Section 3 Miscellaneous All proper expense incurred by the
Retirement Committee in the administration of the Plan, if not paid by the
City, shall be paid from the Fund when authorized by the Retirement Committee
The Retirement Committee shall have no power to add to, subract from or
modify any of the terms of the Plan, nor to change or add to any benefits
XI-2
provided by the Plan, nor to waive or fail to apply any requirements of
eligibility for Retirement Benefits under the Plan
A member of the Retirement Committee shall not vote on any matter relating
solely to himself or to his rights or benefits under the Plan If a Committee
member is so disqualified to act and the remaining members cannot agree, the
City Council shall appoint a temporary substitute member to exercise all the
powers of the disqualified member concerning the matter in which he is
disqualified
The decision of the Retirement Committee and any action taken by it in
respect to the management of the Plan shall be conclusive and binding upon any
and all employees, officers, former employees and officers, Members, Retired
Members, Vested Members, their Beneficiaries, heirs, distributees, executors,
administrators and assigns and upon all other persons whomsoever, but the
Committee at all times shall act in a uniform and nondiscriminatory manner
Neither the establishment of this Plan nor any modifications thereof or any
action taken thereunder or any omission to act, by the Committee, the City
Council or any of their members shall be construed as giving to any Member or
other person any legal or equitable right against the City or any officer or
employee thereof or against the Retirement Committee, the City Council, or any
of their members
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ARTICLE XII
Method of Funding
Section 1 Funding The Retirement Committee shall decide whether it
shall handle the Fund or shall appoint an insurance company, a trustee, or
another funding vehicle, to hold and invest the Retirement Fund The
Retirement Committee shall have the power to change such funding at any time
upon notice required by the terms of the Funding Agreement
Section 2 Assets All of the assets of the Plan shall be held by the
Funding Agent acting under a Funding Agreement for use in providing the
benefits under the plan No part of the said corpus or income shall be used
for or diverted to purposes other than the exclusive benefit of the Members,
Retired Members, Vested Members, their Beneficiaries or estates under the
Plan, prior to the satisfaction of all liabilities hereunder with respect to
them, except such funds which, upon termination of the Plan, are in excess of
the amount required to fully fund the Plan and are due solely to erroneous
actuarial assumptions No person shall have any interest in or right to any
part of the assets of the Fund except as and to the extent expressly provided
in the Plan
Section 3 Duties of the Funding Agent The duties of the Funding
Agent shall include but shall not be limited to the following
(a) It shall receive from the City, all contributions to
the Fund herein established
(b) It shall receive all of the income from the Fund
(c) It shall pay out of the Fund, upon written
instructions from the Retirement Committee, the funds required
for payments under the Plan
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(d) It shall invest and reinvest the corpus and income of
the Fund, subject to the requirements of the Plan, as directed
by the Retirement Committee and set forth in the funding
agreement
(e) It shall maintain such records and accounts of the
Fund, and shall render such financial statements and reports
thereof, as may be required from time to time by the City
Council or the Retirement Committee
Section 4 Investment Powers The investment of the corpus of the
Fund shall be made according to the powers and limitations set forth in the
Funding Agreement
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ARTICLE XIII
Retirement Benefits and Rights Inalienable
Section 1 Inalienability Members, Retired Members, Vested Members
and their Beneficiaries under the Plan are hereby restrained from selling,
transferring, anticipating, assigning, hypothecating, or otherwise disposing
of their Retirement Benefit, prospective Retirement Benefit, or any other
rights or interest under the Plan, and any attempt to anticipate, assign,
pledge, or otherwise dispose of the same shall be void Said Retirement
Benefit, prospective Retirement Benefit and rights and interests of said
Members, Retired Members, Vested Members or Beneficiaries shall not at any
time be subject to the claims of creditors or liabilities or torts of said
Members, Retired Members, Vested Members or Beneficiaries, nor be liable to
attachment, execution, or other legal process
Section 2 Bankruptcy If any Member, Retired Member, Vested Member
or Beneficiary shall become bankrupt or attempt to anticipate, assign or
pledge any benefits under the Plan, then such benefits shall, in the discre-
tion of the Retirement Committee, cease, and in that event the Retirement
Committee shall have authority to cause the same, or any part thereof, to be
held or applied to or for the benefit of such Member, his spouse, his
children, or other dependents, or any of them, in such manner and in such
proportions as the Retirement Committee may deem proper
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ARTICLE XIV
Modification or Termination of Plan
Section 1 Expectation It is the expectation of the City Council
that it will continue this Plan and the payment of its contributions hereunder
indefinitely, but continuance of the Plan is not assumed as a contractual
obligation of the City
Section 2 Amendment The City Council reserves the right to alter,
amend, or terminate the Plan or any part thereof in such manner as it may
determine, and such alterations, amendment or termination shall take effect
upon notice thereof from the City Council to the Retirement Committee,
provided that no such alteration or amendment shall permit any part of the
Fund to revert to or be recoverable by the City or be used for or diverted to
purposes other than the exclusive benefit of Members, Retired Members, Vested
Members or Beneficiaries under the plan, except such funds, if any, as may
remain at termination of the Agreement after satisfaction of all liabilities
with respect to Members, Retired Members, Vested Members and Beneficiaries
under the Plan and are due solely to erroneous actuarial assumptions
Section 3 Approval Under the Internal Revenue Code The Plan is
intended to comply with the requirements of the applicable provisions of
Section 401(a) of the Internal Revenue Code as now in effect or hereafter
amended, and any modification or amendment of the Plan may be made retro-
active, as necessary or appropriate, to establish and maintain such
compliance
XIV-1
Section 4 Discontinuance The City Council reserves the right at any
time and for any reason satisfactory to it to discontinue permanently all
contributions under this Plan Such discontinuance shall be deemed to be a
complete termination of the Plan
Section 5 Termination In the event of a partial or complete
termination of the Plan, all affected funds covered by the Agreement shall be
allocated to affected Members, Retired Members, Vested Members and
Beneficiaries in proportion to the actuarial reserves for each Member's
Accrued Benefit at the date of termination of the Plan
Section 6 Distribution When the funds covered by the Agreement have
been allocated as indicated above, the distribution may be made in the form of
cash or nontransferable annuity contracts as determined by the Retirement
Committee, provided that any affected funds remaining after the satisfaction
of all liabilities to Members, Retired Members, Vested Members and
Beneficiaries under the Plan may be withdrawn by the Retirement Committee from
the Fund and refunded to the City
XIV-2
ARTICLE XV
Benefit Restrictions on Early Termination
Section 1 Restrictions Notwithstanding any other provision hereof,
the benefits provided by City contributions for Members described in Section 2
herein shall be subject to the following conditions
(a) Payment in full shall be made of such benefits which
have been provided by City contributions not exceeding the
larger of the following amounts (1) $20,000, or (11) an amount
equal to 20/ of the first $50,000 of the Member' s average
regular annual Compensation multiplied by the number of years
between the date of the establishment of this Plan and (1) the
date that the Plan terminates or (2) if benefits become payable
to a Member described in Section 2 herein within ten years after
the date of the establishment of this Plan, the date the
benefits of such Member first become payable (if before the date
of termination of this Plan) or (3) if benefits become payable
to a Member described in Section 2 herein after the Plan has
been in effect for ten years and if the full current costs of
the plan for the first ten years have not been met or if the
full current costs have not been met on the dates referred to in
(1) or (2) above, the date of the failure to meet the full
current costs,
(b) If (1) this Plan is terminated within ten years after
its establishment or (2) the benefits of any of the Members
described in Section 2 herein become payable within ten years
after the establishment of this Plan or (3) the benefits of any
of such Members become payable after this Plan has been in
effect for ten years and at the time such benefits become
payable the full current costs for the first ten years have not
been met, the benefits which any of such Members may receive
from City contributions shall not exceed the benefits set forth
in paragraph (a) of this section This limitation shall cease
to be effective at such time, at or after the expiration of ten
years from the date of the establishment of this Plan, as the
full current costs of the Plan have first been met,
(c) If a Member described in Section 2 herein leaves the
employ of the City, the benefits which he may receive from City
contributions shall not at any time, within the first ten years
after the establishment of this Plan, exceed the benefits set
forth in (a) herein, if, at the end of ten years after the date
of the establishment of this Plan the full current costs of the
XV-1
first ten years have not been met, the benefits such Member may
receive from City contributions shall not exceed the benefits
set forth in (a) herein until the first time that the full
current costs of this Plan have been met,
(d) These conditions shall not restrict the full payment
of any benefits on behalf of a Member who dies while this Plan
is in full effect and its full current costs have been met,
(e) These conditions shall not restrict the current
payment of full Retirement Benefits called for by this Plan for
any Retired Member while this Plan-is in full effect and its
full current costs have been met,
(f) This section is intended to conform to the require-
ments of Treasury Regulation, Secton 1 401-4(c) and shall cease
to be effective at such time as the provisions of Treasury
Regulation 1 401-4(c) or any substitute therefor are no longer
effective or applicable
Section 2 Members Affected by Section 1 The Members referred to in
Section 1 herein shall be limited to those whose anticipated annual benefit
hereunder shall exceed $1,500 and who at the Effective Date hereof are among
the twenty-five highest paid employees of the City, whether or not initially
eligible for membership
Section 3 Amendment of Plan If the Plan is amended to increase
benefits which would substantially increase the extent of possible discrimi-
nation as to contributions or as to benefits upon termination of the Plan, the
restrictions set forth in Section 1 of this Article XV shall be applied to the
Plan as if it were a new plan established on the date of such change
XV-2
ARTICLE XVI
Limitations
Section 1 Reemployment of Former Members If a Member' s employment
terminates prior to becoming eligible for a Retirement Benefit and the Member
is subsequently reemployed as an Employee, such Member shall not be entitled
to receive credit for his previous Credited Service under the Plan, except as
provided in Article IV
Section 2 Reemployment of Retired Members If a Retired Member is
reemployed as an Employee of the City, no Retirement Benefit payments shall be
made during the period of such reemployment Upon the subsequent termination
of employment by such a Member, the Member shall be entitled to receive a
Retirement Benefit based on his total Credited Service prior to the date of
his previous Retirement, during the period of his reemployment and in the case
of a disabled Member, his Credited Service while disabled In the case of
reemployment of a Retired Member who received any Pension payments prior to
his reemployment, the Retirement Benefit payable upon his subsequent
Retirement shall be reduced by the Actuarial Equivalent of the Pension
payments, other than Disability Pension payments, he received prior to his
Normal Retirement Date
Section 3 Limitation of Benefits The annual benefit in the form of
a straight life annuity (with no ancillary benefits) provided by City
contributions for a Member with ten or more years of Credited Service at his
Normal Retirement Date shall not exceed the lesser of $75,000 (subject to
annual cost-of-living adjustments which take effect no sooner than the
XVI-1
effective date of the adjusted limitation published by the Internal Revenue
Service) or 100/ of the Member' s average compensation for his highest paid
three consecutive calendar years of Credited Service Regardless of his
average compensation, an annual benefit of $10,000 or less payable to such
Member under this and all other defined benefit plans of the City shall not be
deemed to be a violation of this section if such Member has not participated
at any time in a defined contribution plan maintained by the City If a
Member retires with less than ten years of Credited Service, the $75,000 (as
adjusted) limitation on annual benefits provided by City contributions shall
be reduced by multiplying the maximum annual benefit above by a fraction, the
numerator of which is the number of years of the Member's Credited Service and
the denominator of which is ten If the benefits of a Member are payable
before age 55, such benefit shall be adjusted to the Actuarial Equivalent of a
benefit commencing at age 55 for purposes of applying this limitation No
contributions shall be made on behalf of any Member which would cause such
Member's annual benefit to exceed such limitations as provided in the Internal
Revenue Code of 1954, as amended, and accompanying regulations For purposes
of this section the limitation year shall be the Plan Year
Section 4 Consolidation or Merger The Plan shall not be merged or
consolidated with, nor shall any assets or liabilities be transferred to any
other Plan, unless the benefits payable to each Member if the Plan were
terminated immediately after such action would be equal to or greater than the
benefits to which such Member would have been entitled if this Plan had been
terminated immediately before such action
XVI-2
r
RECOMMENDED AND APPROVED in Fort Collins, Colorado, this day
of , 1981
THE CITY COUNCIL OF THE
CITY OF FORT COLLINS
ATTEST
XVI-3