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2008-19
A RESOLUTION
AUTHORIZING THE SIXTH AMENDMENT TO THE CITY OF LAKEWOOD POLICE 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 the Fifth Amendment to the Plan effective upon IRS approval; and
WHEREAS, the City of Lakewood desires to further amend the Plan to incorporate tax law changes from the 2006 Pension Protection Act.
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(i), Eligible Retirement Plan, shall be amended to read as follows:
Eligible Retirement Plan: Any defined contribution plan, defined benefit plan,
annuity contract described in Code §403(b), individual retirement account
(IRA) or annuity described in Code §§ 408(a) or (b), or Roth IRA described
in Code § 408A, and any eligible plan under Code §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 former spouse who is the alternate payee under a domestic
relations order, as defined in Code §414(p) or CRS §14-10-113.
SECTION 2. The Plan, at the first sentence of ARTICLE IV, CONTRIBUTIONS AND
FORFEITURES, Section 4.4, Rollover Contributions, of the Plan shall be amended
to read as follows:
4.4 Rollover Contributions: Notwithstanding the limits imposed upon participant
contributions, a participant may contribute to the Plan a rollover distribution
from an Eligible Retirement Plan described in Section 2.1(i), except that the
Plan will not accept a rollover contribution from a Roth IRA described in Code
§ 408A. Rollover contributions shall be made in accordance with the procedures
of the Retirement Board.
SECTION 3. The Plan, at ARTICLE V, ALLOCATIONS TO PARTICIPANTS' ACCOUNTS, Section
5.4, Multiple Plan Reduction, of the Plan is hereby deleted.
SECTION 4. The Plan, at ARTICLE VI, BENEFITS, Section 6.2, Death, shall be amended
to read as follows:
6.2 Death: In the event that the termination of employment of a Participant
is caused by his death, the entire amount then in each of his accounts shall
be paid to his Beneficiary in accordance with Section 6.4 after receipt by the
Retirement Board of acceptable proof of death. Distributions to designated Beneficiaries
must meet the minimum distribution requirements set forth in Section 6.5. A
designated Beneficiary shall be able to elect a rollover of his or her interest
in a deceased Participant's Aggregate Account to an individual retirement account
(IRA) or annuity described in Code §§ 408(a) or (b), or to a Roth
IRA described in Code § 408A, subject to applicable Code requirements.
SECTION 5. The Plan, at the last paragraph of ARTICLE VI, BENEFITS, Section
6.3, Distribution Upon Other Termination of Employment or Upon Transfer to Other
Employment Within the City, subparagraph (d), Distribution for Rollover Transactions
and Direct Transfers, shall be amended to read as follows:
For purposes of the direct rollover provision in this § 6.3(d) 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 (IRA) or annuity described in §§ 408(a) or (b) of the Code,
to a Roth IRA described in Code § 408A, or to a qualified defined contribution
plan described in §§ 401(a) or 403(a) of the Code 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.
SECTION 6. The Plan, at ARTICLE VI, BENEFITS, Section 6.7, Hardship Withdrawal,
subparagraph b., Hardship Defined, shall be amended to read as follows:
b. Hardship Defined. "Hardship" means a severe financial setback of
the Participant, or of the spouse, dependent or designated Beneficiary of the
Participant, resulting from a sudden and unexpected illness or accident, loss
of property due to casualty, or other similar extraordinary and unforeseeable
circumstances, arising from events beyond the control of the Participant, or
of the spouse, dependent or designated Beneficiary of the Participant, as the
case may be. Whether circumstances constitute an unforeseeable emergency depends
on the facts of each case, but, in any case, payment may not be made to the
extent that such hardship is or may be relieved:
through reimbursement or compensation by insurance or otherwise; by liquidation
of the Participant's assets, to the extent that liquidation itself would not
cause severe financial hardship; or by cessation of Voluntary Employee Contributions
under the Plan. Unforeseeable emergencies shall not include the need to send
a Participant's child to college, or the desire to purchase a home. Hardship
withdrawals shall be governed by the guidelines established by Treas. Reg. §
1.457-2(h)(4) as amended.
INTRODUCED, READ AND ADOPTED by a vote of 11 For and 0 Against at a regular
meeting 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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