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2008-18
A RESOLUTION
AUTHORIZING THE FIFTH AMENDMENT TO THE CITY OF LAKEWOOD POLICE MONEY PURCHASE PENSION PLAN AND TRUST AGREEMENT
WHEREAS, the City of Lakewood adopted the Lakewood Police Money Purchase Pension Plan and Trust Agreement ("Plan"), effective March 28, 1978; and,
WHEREAS the City of Lakewood amended and restated the Plan, effective January 1, 1994; and,
WHEREAS the City of Lakewood adopted the First Amendment to the Plan effective January 1, 1999, 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, 2003; 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, Section 2.01, "Account",
shall be amended to read as follows:
2.01 "Account," unless otherwise indicated, means a Participant's
entire interest in the Pension Trust Fund created by the City's contributions,
the Participant's own contributions, and the income, expenses, gains and losses
attributable to such contributions. A Participant's Account includes the value
of the Participant's Retirement Medical Savings Account, if any.
SECTION 2. The plan, at ARTICLE IV, CONTRIBUTIONS, shall be amended by the addition
of new Section 4.06, Retirement Medical Savings Accounts, to read as follows:
4.06 Retirement Medical Savings Accounts:
(a) Election to Contribute; Limit on Contributions. Each Participant may elect annually to contribute up to 25% of his City and 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 Section 5.02.
(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 Section 5.02.
SECTION 3. The plan, at ARTICLE V, DETERMINATION AND VESTING OF PARTICIPANTS' ACCOUNTS, Section 5.01, Accounting and Allocation, Subsection (b), Participants' Accounts, shall be amended to read as follows:
(b) Participants' Accounts. The Plan Manager shall maintain an Account for each Participant showing the dollar value of his current Account in the Pension Trust as of the last previous valuation date. This Account shall be known as the City contributions account. Separate accounts, to be known as Participant contribution accounts, also shall be kept showing the contributions of each Participant and the earnings, losses and changes in fair market value thereof. The Plan Manager shall maintain separate accounts with respect to the Retirement Medical Savings Accounts of the Participants, and within such separate Retirement Medical Savings Accounts shall maintain separate subaccounts for City contributions and Participant contributions.
The Plan Manager shall distribute, or cause to be distributed to each Participant at least annually, a written statement setting forth the current value of each Participant's Account, separately stating the value of each Participant's Retirement Medical Savings Account, if any, and setting forth such other information as the Plan Manager determines.
SECTION 4. The plan, at ARTICLE VII, DISTRIBUTION FROM TRUST FUND, shall be amended by the addition of new Section 7.07, Distribution of Retirement Medical Savings Accounts, to read as follows:
(a) General. Notwithstanding any provision of this ARTICLE VII to the contrary, a Participant's vested Retirement Medical Savings Account shall be distributed in accordance with this Section 7.07.
(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 7.02(f). 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 under Section 6.02.
(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 5.01(b) and (f) 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.
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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