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Home My WebLink AboutCORRESPONDENCE - RFP - P926 PUBLIC SECTOR RETIREMENT PLAN, INVEST CONSULT (8)1 Resolution 04-3 Adopting the Third Amendment to the Poudre Fire Authority Old Hire Money Purchase Pension Plan and Trust Agreement as Amended and Restated Effective December 24, 2001 WHEREAS, the Poudre Fire Authority (the "Employer"), established the Poudre Fire Authority Old Hire-City Money Purchase Plan and Trust Agreement (the "Plan"), effective January 1, 1983; and WHEREAS, the Plan merged with the Poudre Fire Authority Fire Protection District Plan to form the Poudre Fire Authority Old Hire Money Purchase Pension Plan and Trust Agreement as amended and restated, effective December 24, 2001 (the A2001 Restated Plan@); and WHEREAS, the Employer adopted via Resolution 02-13 the First Amendment to the 2001 Restated Plan effective January 1, 2002; and WHEREAS, the Employer adopted via Resolution 03-6 the Second Amendment to the 2001 Restated Plan effective April 22, 2003; and WHEREAS, the Board of Trustees of the Poudre Fire Authority Old Hire Money Purchase Pension Plan and Trust Agreement have recommended the adoption of the amendments set forth herein; and WHEREAS, pursuant to '11.1 of the 2001 Restated Plan, the Employer has the authority to amend the Plan without the approval of Participants of said Plan solely for the purpose of incorporating minor, technical amendments which are required from time to time by changes in state or federal laws or regulations; and WHEREAS, the Employer deems it advisable to amend the Plan and desires to further amend the Plan to incorporate the minimum required distribution provisions of Code '401(a)(9) and the Final Regulations thereunder, as required pursuant to IRS Revenue Procedure 2002-29. NOW, THEREFORE, be it resolved by the Board of Directors of the Poudre Fire Authority that the 2001 Restated Plan is hereby amended, effective January 1, 2003, as follows: 1. ARTICLE VII., DISTRIBUTION FROM TRUST FUND, '6.3, Post-Death Distribution, shall be deleted in its entirety and replaced by a new '6.3, Required Minimum Distribution Rules, to read as follows: 6.3 Required Minimum Distribution Rules a. General Rules. 2 (1) Effective Date. The provisions of this Section 6.3 will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year. (2) Precedence. The requirement of this Section 6.3 will take precedence over any inconsistent provisions of the plan. (3) Requirements of Treasury Regulations Incorporated. All distributions required under this Section 6.3 will be determined and made in accordance with the Treasury Regulations under Code '401(a)(9). (4) TEFRA '242(b)(2) Elections. Notwithstanding the other provisions of this Section 6.3, distributions may be made under a designation made before January 1, 1984, in accordance with '242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that relate to '242(b)(2) of TEFRA. b. Death of Participant Before Distribution Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows: (1) If the Participant's surviving spouse is the Participant's sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70 1/2, if later. (2) If the Participant's surviving spouse is not the Participant's sole designated beneficiary, then distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (3) If there is no designated beneficiary as of September 30 of the year following the year of the Participant's death, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (4) If the Participant's surviving spouse is the Participant's sole designated beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this Section 6.3(b), other than Section 6.3(b)(1), will apply as if the surviving spouse were the Participant. 3 (5) For purposes of this Section 6.3(b) and Section 6.3(d), unless Section 6.3(b)(4) applies, distributions are considered to begin on the Participant's required beginning date. If Section 6.3(b)(4) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section 6.3(b)(1). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's required beginning date (or to the Participant's surviving spouse before the date distributions are required to begin to the surviving spouse under Section 6.3(b)(1)), the date distributions are considered to begin is the date distributions actually commence. c. Required Minimum Distributions During Participant's Lifetime. (1) Amount of Required Minimum Distribution for Each Distribution Calendar Year. During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of: (i) the quotient obtained by dividing the Participant's account balance by the distribution period in the Uniform Lifetime Table set forth in '1.401(a)(9)-9 of the Treasury Regulations, using the Participant's age as of the Participant's birthday in the distribution calendar year; or (ii) if the Participant's sole designated beneficiary for the distribution calendar year is the Participant's spouse, the quotient obtained by dividing the Participant's account balance by the number in the Joint and Last Survivor Table set forth in '1.401(a)(9)-9 of the Treasury Regulations, using the Participant's and spouse's attained ages as of the Participant's and spouse's birthdays in the distribution calendar year. Required minimum distributions will be determined under this Section 6.3(c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant's date of death. d. Required Minimum Distributions After Participant's Death. (1) Death On or After Date Distributions Begin. (i) Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is 4 the quotient obtained by dividing the Participant's account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's designated beneficiary, determined as follows: (A) The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (B) If the Participant's surviving spouse is the Participant's sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. For distribution calendar years after the year of the surviving spouse's death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year of the spouse's death, reduced by one for each subsequent calendar year. (C) If the Participant's surviving spouse is not the Participant's sole designated beneficiary, the designated beneficiary's remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (ii) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's account balance by the Participant's remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (2) Death Before Date Distribution Begin. (I) Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's account balance by the remaining life expectancy of the Participant's designated beneficiary, determined as provided in Section 6.3(d)(1). 5 (ii) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (iii) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving spouse is the Participant's sole designated beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under Section 6.3(b)(1), this Section 6.3(d)(2) will apply as if the surviving spouse were the Participant. e. Definitions. The following definitions apply to this Section 6.3. (1) Designated Beneficiary. The individual who is designated as the Beneficiary by the Participant, or by the Plan, who is a "designated beneficiary" under Code '401(a)(9) and '1.401(a)(9)-1, Q&A-4, of the Treasury Regulations. (2) Distribution Calendar Year. A calendar year for which a minimum distribution if required. For distributions beginning before the Participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant's required beginning date. For distributions beginning after the Participant's death, the first distribution calendar year is the calendar year in which distributions are required to begin under Section 6.3(b). The required minimum distribution for the Participant's first distribution calendar year will be made on or before the Participant's required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant's required beginning date occurs, will be made on or before December 31 of that distribution calendar year. (3) Life Expectancy. Life expectancy as computed by use of the Single Life Table in '1.401(a)(9)-9 of the Treasury Regulations. (4) Participant's Account Balance. The balance of the Participant's Account as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the 6 valuation calendar year after the valuation date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year. (5) Required Beginning Date. The latest date for commencement of distributions for a Participant, as determined under Section 6.4 of the Plan IN WITNESS WHEREOF, this Resolution was adopted by the Poudre Fire Authority this 24th day of February, 2004. POUDRE FIRE AUTHORITY By: _________________________________ PFA Board Chair ATTEST: By: _________________________________ Recording Secretary