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2002-102
A RESOLUTION
AUTHORIZING AMENDMENT OF THE CITY MANAGER DEFINED BENEFIT
PENSION PLAN AND TRUST FOR THE CITY OF LAKEWOOD
BY ADOPTION OF THE SECOND AMENDMENT
WHEREAS, effective April 1, 2000, the City of Lakewood adopted the City Manager Defined Benefit Pension Plan and Trust for the City of Lakewood (the "Plan"); and
WHEREAS, the Plan was amended by that certain First Amendment, dated July 23, 2001; and
WHEREAS, the City of Lakewood deems it advisable to further amend the Plan to conform with recent changes in Federal law, by increasing the Internal Revenue Code Section 401(a)(17) compensation limit used for benefit accrual under the Plan to $200,000 (as adjusted for cost of living increases), adding to the definition of Eligible Retirement Plan Section 457 and Section 403(b) plans, updating the applicable mortality table reference, adding to the compensation and wages definitions any qualified transportation fringe benefits under Code Section 132(f)(4), and increasing the benefit limitation of Internal Revenue Code Section 415 to $160,000 (as adjusted for cost of living increases);
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lakewood,
Colorado, that the City Manager Defined Benefit Pension Plan and Trust for
the City of Lakewood is revised by adoption of the Second Amendment, in the
form attached hereto as Exhibit "A".
INTRODUCED, READ AND ADOPTED by a vote of 11 for and 0 against at a regular meeting of the City Council on December 9, 2002, at 7 o'clock p.m. at Lakewood Civic Center, 480 South Allison Parkway, Lakewood, Colorado.
Stephen A. Burkholder, Mayor
ATTEST:
Margy Greer, City Clerk
EXHIBIT "A"
SECOND AMENDMENT TO THE
CITY MANAGER DEFINED BENEFIT
PENSION PLAN AND TRUST
FOR THE CITY OF LAKEWOOD
WHEREAS, effective April 1, 2000, the City of Lakewood adopted the City Manager Defined Benefit Pension Plan and Trust for the City of Lakewood (the "Plan"); and
WHEREAS, the Plan was amended by that certain First Amendment, dated July 23, 2001; and
WHEREAS, the City of Lakewood now desires to amend the Plan to incorporate tax law changes from the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA").
NOW, THEREFORE, the Plan is hereby amended as follows:
1. Article I. Definitions, Section 1.01(a), is amended as follows:
a. Applicable Mortality Table. The "Applicable Mortality Table" is the table prescribed for use in the calendar year in which benefit payments commence under this Plan in regulations under Code Section 417(e), and which until modified or superseded, is the table set forth in Revenue Ruling 2001-62.
2. Article I. Definitions, Section 1.05, is amended as follows:
1.05 Compensation means the gross base compensation directly or indirectly paid to the City Manager by the Employer for the performance of duties or for which the City Manager is entitled to payment for a period during which the City Manager does not perform any duties.
a. Notwithstanding any other provision of law, the amount of Compensation used to determine the benefits payable under this Plan in any Plan Year shall not exceed $200,000, as adjusted for cost?of?living increases by the Secretary of the Treasury under Code Section 401(a)(17) and the regulations thereunder.
b. The City Manager's Compensation, for purposes of the limitations under Code Sections 415 and 401(a)(17), the computation of benefits payable from the Plan and contributions, shall include any elective deferral, as defined under Code Section 402(g)(3), and any amount that is contributed or deferred by the Employer at the election of the City Manager and which, by reason of Sections 125, 132(f)(4) and 457 of the Code, is not includible in his gross income.
c. "Final Compensation" means the City Manager's Compensation for the 12?month period prior to the date the City Manager attains Normal Retirement Age. If the Employer terminates the employment of the City Manager either before or after attaining Normal Retirement Age, Final Compensation shall mean the City Manager's Compensation for the 12?month period prior to the date of termination of employment.
3. Article VI. Benefit Payments, Claims Procedure and Maximum Limitation, Section 6.03, is amended as follows:
6.03 Rollovers.
a. Notwithstanding any provision of the Plan to the contrary that would otherwise
limit a distributee's election under the Plan, a distributee may elect, at
the time and in the manner prescribed by the Plan Administrator, to have any
portion of an eligible rollover distribution, as defined in Code Section 402(c)(4),
paid directly to an eligible retirement plan specified by the distributee
in a direct rollover.
For the purposes of this Section 6.03 "eligible retirement plan"
means an individual retirement account as defined in Code Section 408(a),
an individual retirement annuity described in Code Section 408(b), an qualified
defined contribution plan or qualified defined benefit plan, an annuity plan
described in Code Section 403(a), an annuity contract described in Code Section
403(b), or an eligible plan under Code Section 457(b) which is maintained
by a state, political subdivision of 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 Section 414(p)
or CRS Section 14-10-113.
b. The City Manager may make a Rollover Contribution to the Trust Fund. Any such Rollover Contribution shall be used as part of the City Manager's Contribution, as defined in Section 3.02, to provide for the offset described in Section 4.01 c. and shall be invested by the Trustee in accordance with the provisions of the Plan.
For purposes of this Section 6.03, a "Rollover Contribution" is a contribution to the Trust Fund of an eligible rollover distribution, as defined in Code Section 402(c)(4), from an eligible retirement plan, that meets the requirements of Section 402 of the Code and is made on or before the sixtieth day following receipt by the City Manager.
4. Article VI. Benefit Payments, Claims Procedure and Maximum Limitation, Section 6.05, is amended as follows:
6.05 Maximum Limitation.
a. The annual benefit in the form of a straight life annuity, with no ancillary benefits, provided by employer contributions for the City Manager, if he has 10 or more years of service with the Employer at Normal Retirement Age shall not exceed $160,000, as adjusted for cost?of?living increases by the Secretary of the Treasury as of January 1 for any limitation year, under Code Section 415(b) and the regulations thereunder. A limitation as adjusted under Code Section 415(b) will apply to limitation years ending with or within the calendar year for which the adjustment applies.
For purposes of this Section 6.05, any retirement benefit payable in a form other than a straight life annuity shall be adjusted to the Actuarial Present Value, as defined in subsection c., of a straight life annuity in accordance with the regulations under Code Section 415(b), and the City Manager's annual retirement benefit shall not exceed such limitations as adjusted.
The Employer shall make no contributions on behalf of the City Manager that would cause his annual benefit to exceed such limitations as provided in code Section 415(b). For purposes of this Section 6.05, the limitation year shall be the calendar year.
b. If the City Manager retires with less than 10 years of service with the Employer, the limitation listed in subsection a. above and the $10,000 limitation on annual benefits provided by employer contributions shall be reduced by multiplying the maximum annual benefit above by a fraction, the numerator of which is the number of years of service the City Manager has with the Employer and the denominator of which is 10.
c. If benefits of the City Manager are payable before age 62, such benefit shall be adjusted to the Actuarial Present Value of a benefit commencing at age 62 for purposes of applying this limitation. Such Actuarial Present Value shall be based on the greater of 5% or the interest rate specified in Section 1.01 and shall not be less than $75,000 if the City Manager's accrued benefit becomes payable at or after age 55, or the Actuarial Present Value of $75,000 at age 55 if the City Manager's accrued benefit is payable prior to age 55. For purposes of this Section 6.05, the Actuarial Present Value of a benefit payable after the City Manager attains age 65 shall be based on the lesser of 5% or the interest rate specified in Section 1.01. The limitations set forth in subsections b. and c. shall not apply to a City Manager's Disability Benefit or a Survivors Benefit paid to a surviving spouse.
d. For purposes of this Section 6.05, all defined benefit plans (whether or not terminated) of the Employer shall be treated as one defined benefit plan and all defined contribution plans (whether or not terminated) of the Employer shall be treated as one defined contribution plan. The foregoing limitations shall apply to the aggregate annual retirement benefits that the City Manager may receive under one or more of such plans.
e. For purposes of applying the provisions of this Section 6.05, the "wages" of the City Manager shall mean the amount reportable by the Employer for federal income tax purposes as wages paid to the City Manager for the calendar years in question. "Wages" shall also include any elective deferral amounts under Code Section 125, 132(f)(4) and 457 that are not includible in the gross income of the City Manager.
f. Notwithstanding the provisions of this Section 6.05, the amount of annual benefit that the City Manager is receiving under this Plan following termination of employment shall, if the same is limited by operation of such provisions, be increased from time to time for cost?of?living increases thereafter occurring, to the maximum permissible extent in accordance with determinations by the Commissioner of Internal Revenue.
IN WITNESS WHEREOF, effective as of ______________, 2002, the undersigned hereby accept the Plan as amended herein and agree to be bound thereby:
THE CITY OF LAKEWOOD, COLORADO
Stephen A. Burkholder, Mayor
ATTEST:
Margy Greer, City Clerk
TRUSTEES:
Ken Milano, Director of Employee Relations
Jacque Wedding-Scott, Director of Finance
Margy Greer, City Clerk
Approved as to Form:
Roger Noonan, City Attorney
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