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2008-16

A RESOLUTION

AUTHORIZING THE FIFTH AMENDMENT TO THE LAKEWOOD EMPLOYEES MONEY PURCHASE PENSION PLAN AND TRUST AGREEMENT

WHEREAS, the City of Lakewood adopted the Lakewood Employees Money Purchase Pension Plan and Trust Agreement ("Plan") March 1, 1991; and,

WHEREAS the City of Lakewood restated the Plan, effective January 1, 1999; and,

WHEREAS the City of Lakewood adopted the First Amendment to the Plan effective April 1, 2000, the Second Amendment to the Plan effective January 1, 2002, the Third Amendment to the Plan effective January 1, 2003, and the Fourth Amendment to the Plan effective January 1, 2004; and,

WHEREAS, the City of Lakewood desires to further amend the Plan to provide that Participants may elect to contribute up to 25% of their employer and employee contributions to a retirement medical savings account established and administered in accordance with Internal Revenue Code Section 401(h); and,

WHEREAS, the City of Lakewood desires that the provision of retirement medical savings accounts to Participants shall not be effective until approval by the Internal Revenue Service of this Fifth Amendment to the Plan.

NOW, THEREFORE, BE IT RESOVLED by the City Council of the City of Lakewood, Colorado, that:

SECTION 1. The Plan, at ARTICLE II, DEFINITIONS AND CONSTRUCTION, Section 2.1(b), Aggregate Account, shall be amended to read as follows:

2.1 (b) Aggregate Account. The value of all accounts maintained on behalf of a Participant, including all Employer or Employee contributions, and the income, expenses, gains and losses attributable to such contributions. A Participant's Aggregate Account also includes the value of the Participant's Retirement Medical Savings Account, if any.

SECTION 2. The Plan, at ARTICLE IV, CONTRIBUTIONS AND FORFIETURES, shall be amended by the addition of new Section 4.5, Retirement Medical Savings Accounts, to read as follows:

4.5 Retirement Medical Savings Accounts:

(a) Election to Contribute; Limit on Contributions. Each Participant may elect annually to contribute up to 25% of his Employer and Mandatory Employee contributions to a "Retirement Medical Savings Account", to be used for the medical expenses of the Participant and the Participant's spouse and dependents, incurred after the Participant's retirement. The Retirement Medical Savings Accounts under the Plan are intended to comply with the requirements of Section 401(h) of the Code.

(b) Rules and Regulations; Election Form. The Retirement Medical Savings Accounts in the Plan will be subject to the Rules and Regulations issued by the Plan Manager. The Plan Manager shall provide Participants annually with an Election Form with respect to making contributions to their Retirement Medical Savings Accounts.

(c) Separate Accounts. The Participants' Retirement Medical Savings Accounts shall be maintained at all times in separate accounts, and within such accounts the Plan Manager shall maintain a separate accounting for City and Employee contributions. Notwithstanding any provision of the Plan to the contrary, a Participant shall not be permitted to transfer any of the funds in the Participant's Retirement Medical Savings Account to the Participant's other accounts in the Plan.

(d) Vesting. City and Employee contributions to Retirement Medical Savings Accounts shall vest in the same manner as other City and Employee contributions to Participants' Accounts, in accordance with the provisions of Article VI of the Plan.

(e) Investment. Retirement Medical Savings Accounts shall be allocated earnings, losses and expenses, and otherwise be accounted for, in the same manner as other City and Employee contributions to the Accounts of Participants, in accordance with the provisions of Sections 5.1 and 5.2 of the Plan.

SECTION 3. The Plan, at ARTICLE V, DETERMINATION AND VESTING OF PARTICIPANTS' ACCOUNTS, Section 5. 1, Individual Accounts, shall be amended to read as follows:

5.1 Individual Accounts: The Plan Manager shall create and maintain adequate records to disclose the interest in the Trust of each Participant, Former Participant and Beneficiary. Such records shall be in the form of individual accounts and credits and charges shall be made to such accounts in the manner herein described. A Participant may have up to five separate accounts: an Employer Contribution Account, a Mandatory Employee Contribution Account, a Voluntary Employee Contribution Account, an Employee Rollover Account, and a Retirement Medical Savings Account. The maintenance of individual accounts is only for accounting purposes, and a segregation of the assets of the Trust Fund to each account shall not be required. Within each Participant's Retirement Medical Savings Account the Plan Manager shall maintain separate accounts with respect to Employer contributions and Participant contributions. Distribution and withdrawals made from an account shall be charged to the accounts as of the date paid.

SECTION 4. The Plan, at ARTICLE VI, BENEFITS, shall be amended by the addition of new Section 6.8, Distribution of Retirement Medical Savings Accounts, to read as follows:

6.8 Distribution of Retirement Medical Savings Accounts

(a) General. Notwithstanding any provision of this ARTICLE VI to the contrary, a Participant's vested Retirement Medical Savings Account shall be distributed in accordance with this Section 6.8.

(b) Distribution for Retiree Medical Expenses. The Retirement Medical Savings Accounts of Participants shall be distributed to cover the sickness, accident, hospitalization, and medical expenses of retired Participants, their spouses and dependents, as further provided in the Rules and Regulations issued by the Plan Manager.

(c) Distribution Upon Disability. If a Participant terminates employment because of Total Disability, the Participant's Retirement Medical Savings Account shall become distributable to the Participant as if the Participant had retired.

(d) Distribution Upon Death. Upon a Participant's death for any reason, the Trustee hold and administer the Participant's vested Retirement Medical Savings Account for the benefit of the Participant's surviving spouse, and if the Participant does not have a surviving spouse, for the benefit of the Participant's dependents. distribute the Retirement Medical Savings Account to the Beneficiary designated under Section
6.02, as soon as practical following the Participant's death, in accordance with the optional form of benefit selected by the Beneficiary in accordance with Section 6.3(c). If the Participant has not designated a Beneficiary, or if he has designated a Beneficiary who dies and the Participant has not designated a contingent Beneficiary, the Participant's Retirement Medical Savings Account shall be paid in accordance with the procedures in Section 6.4.

(e) Distribution Upon Other Termination of Employment or Upon Transfer to Other Employment Within the City. If a Participant's Account balance becomes distributable upon his termination of employment for any reason other than retirement, disability or death, or upon the Participant's transfer to other employment with the City, the Trustee shall hold and administer the Retirement Medical Savings Account of the Participant until directed by the Participant to distribute amounts for the payment of covered expenses. Such Participant shall receive income and expenses allocations pursuant to Section 5.2 until the balance of the Participant's vested Retirement Medical Savings Account has been distributed.

(f) Rollover Not Permitted. No part of a Participant's Retirement Medical Savings Account shall be permitted to be rolled over into any other plan or account.

SECTION 5. The Plan, at ARTICLE XIV, RETIREE HEALTH BENEFITS, and ARTICLE II, DEFINITIONS AND CONSTRUCTION, Section 2.1(bb), Retirement Health Benefit Eligibility, which governed the former retiree health accounts under Code Section 401(h) provided by the Plan, shall be deleted.

INTRODUCED, READ AND ADOPTED by a vote of 11 For and 0 Against at a regular meting of the City Council on January 14, 2008, at 7 o'clock p.m. at the Lakewood Civic Center, 480 South Allison Parkway, Lakewood, Colorado.

Bob Murphy, Mayor

ATTEST:
Margy Greer, City Clerk

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