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HomeMy WebLinkAboutCORRESPONDENCE - RFP - P926 PUBLIC SECTOR RETIREMENT PLAN, INVEST CONSULT (9)1 Resolution 02- ______ Adopting the First Amendment to the Poudre Fire Authority New 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 New Hire-City Money Purchase Pension Plan and Trust Agreement (the "Plan"), effective January 1, 1988; and WHEREAS, the Employer adopted the amended and restated Plan, effective December 24, 2001; and WHEREAS, pursuant to ' 11.1 of the Plan, the Employer has the authority to amend the Plan without a vote of the actively-employed eligible employees providing the amendments are minor, technical amendments 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 to comply with the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and with technical tax requirements requested by the Internal Revenue Service in conjunction with the request for a determination letter; and WHEREAS, the Board of Trustees of the Poudre Fire Authority New Hire Money Purchase Pension Plan and Trust Agreement have recommended the adoption of the Plan amendments set forth herein. NOW, THEREFORE, be it resolved by the Board of Directors of the Poudre Fire Authority that the Plan is hereby amended, effective January 1, 2002 as follows: 1. ARTICLE II. DEFINITIONS AND CONSTRUCTION, ' 2.1 Definitions (e) Compensation shall be revised to read as follows: (e) Compensation: A Participant's base salary received from the Employer for personal services during the Year, but excluding holiday pay, acting officer pay, longevity pay, bonus payments, payments for unused vacation, overtime, uniform cleaning and travel allowances, and excluding any benefits paid under this Plan or any other retirement or life insurance program or under any other health or welfare plan. For purposes of allocating the Employer's contribution for the Year in which a Participant begins or resumes Participation, Compensation shall be determined as of the first day of the year in which the Employee became a Participant and Compensation before his Participation began or resumed shall be disregarded. Contributions shall be made on a Participant's base 2 salary as defined herein, before taking into account amounts contributed by the Employer pursuant to a salary reduction agreement which were excludable from the Employee's gross income under Code Section 125, Code Section 132(f)(4), Code Section 402(a)(8), Code Section 403(b) or Code Section 402(h) or 457. Effective January 1, 2002, Compensation in excess of $ 200,000, as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code, shall not be taken into account under the Plan. 2. ARTICLE II. DEFINITIONS AND CONSTRUCTION, ' 2.1 Definitions new section (r) Leased Employee shall be added, with the subsequent sections to be re-lettered, to read as follows: (r) Leased Employee: Any person who is not an employee of the recipient and pursuant to an agreement between the Employer and any other person, has performed services for the Employer on a substantially full time basis for a period of at least one year, and such services are performed under the primary direction and control of the Employer. Contributions or benefits provided a leased employee by the leasing organization which are attributable to services performed for the Employer shall be treated as provided by the Employer. A Leased Employee or Employee shall not be considered an employee of the Employer if: (i) such Employee is covered by a money purchase pension plan providing (1) a non-integrated Employer contribution rate of at least 10% of Compensation, as defined in Code Section 415(c)(3), but including amounts contributed by the Employer pursuant to a salary reduction agreement which were excludable from the Employee's gross income under Code Section 125, Code Section 132(f)(4), Code Section 402(a)(8), Code Section 403(b) or Code Section 402(h), (2) immediate participation, and (3) full and immediate vesting; and (ii) leased employees do not constitute more than 20% of the Employer's non-highly compensated work force. 3. ARTICLE IV. CONTRIBUTIONS AND FORFEITURES, ' 4.2 Contributions by Participants, (b) Voluntary Contributions is hereby amended by the replacement of the first sentence to read as follows: (b) Voluntary Contributions: In order to encourage savings and investments by Participants, effective January 1, 2002, each Participant voluntarily may contribute to the Trust an amount not to exceed seventy- two percent (72%) of Compensation in addition to contributions under subparagraph (a) of this subsection, and subject to the ' 5.3 maximum additions limit. 3 4. ARTICLE V. ALLOCATIONS TO PARTICIPANTS' ACCOUNTS, ' 5.3 Maximum Additions, shall be revised to read as follows: 5.3 Maximum Additions: Notwithstanding anything contained herein to the contrary, the total Additions made to the Employer and Employee Contribution Accounts of a Participant for any Year shall not exceed the "Maximum Permissible Amount," reduced by the sum of any Additions allocated to the Participant's accounts for the same Year under any other defined contribution plan or welfare benefit fund (as defined in Code Section 419(e)) maintained by the employer. The Maximum Permissible Amount shall be equal to the lesser of $ 40,000 or 100% of the Participant's Compensation for such Year, or such amount as provided in '415 of the Code. (a) The term "Additions" means the total of the Employer contributions and forfeiture amounts allocated to a Participant's Employer Contribution Account, plus the amount of any Employee Contributions to the Plan. Amounts allocated to an individual medical account (as defined in Code Section 415(l)(2)) included as part of a defined benefit plan maintained by the Employer are Additions. Furthermore, Additions include contributions paid or accrued attributable to post-retirement medical benefits allocated to the separate account of a key employee (as defined in Code Section 419A(d)(3)) under a welfare benefit fund (as defined in Code Section 419(e)) maintained by the Employer. (b) "Addition" does not include "rollovers" from an eligible retirement plan as defined for the purpose of the direct rollover provisions of '6.6. (c) As of January 1 of each calendar year, and applicable for that Plan Year, the dollar limit may be adjusted for increases in the cost of living in accordance with regulations prescribed by the Secretary of the Treasury or his delegate. If such additions exceed the limitation, the contributions made by the Participant for the Year, which cause the excess, shall be returned to the Participant. If, after returning the Participant's contribution an excess still exists, such excess which is attributable to Forfeitures shall be held in a suspense account. Such account may be maintained if (1) no Employer contributions are made when their allocation could be precluded by Code Section 415, (2) no income is allocated to the account, and (3) amounts in the account are allocated as of each allocation date on which Forfeitures may be allocated until the account is exhausted. Upon termination of the Plan, the balance of such account may revert to the Employer. (d) For purposes of this section, the limitation year shall mean the Plan Year. The term "Compensation" means, for purposes of 4 Sections 5.3 and 5.4 only, a Participant's earned income, wages, salaries, fees for professional services and other amounts received for personal services actually rendered in the course of employment with the employer maintaining the Plan, including cash awards and Elective Contributions, provided, however, that for Plan Years beginning before January 1, 1998, such amounts shall not be included in Compensation for the purpose of applying the limitations on allocations and benefits under Code Section 415. AElective Contributions@ are amounts excludible from an Employee=s gross income under Code Sections 125, 132(f)(4), 402(e)(3), 403(b), 402(h)(1)(B), or 457, or any other Elective Deferrals as defined in Code Section 402(g)(3). 5. ARTICLE VI. BENEFITS, ' 6.6 Direct Transfers and Rollovers, paragraphs two and three shall be amended to read as follows: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the Participant, except that an eligible rollover distribution does not include: (i) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated Beneficiary, or for a specified period of ten years or more; (ii) any distribution to the extent such distribution is required under Code Section 401(a)(9); and (iii) the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). For purposes of the direct rollover provisions in this ' 6.6, a portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Code ' 408(a) or (b), or to a qualified defined contribution plan described in Code ' 401(a) or 403(a) that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. An eligible retirement plan is an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(a), or a qualified trust described in Code Section 401(a) that accepts the distributee's eligible rollover distribution. For purposes of the direct rollover provisions in this ' 6.6, an Eligible Retirement Plan shall also mean an annuity contract described in Code ' 403(b) and an eligible plan under Code ' 457(b) which is maintained by a state, political subdivision of 5 a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan. The definition of Eligible Retirement Plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a domestic relations order, as defined in Code ' 414(p). IN WITNESS WHEREOF, this Resolution was adopted by the Poudre Fire Authority this ____ day of ________________, 2002. POUDRE FIRE AUTHORITY By: ______________________________ Its: ______________________________ ATTEST: By: ______________________________ Its: ______________________________