HomeMy WebLinkAbout09724RESOLUTION NO. 9724
A RESOLUTION ESTABLISHING CONTRIBUTION RATES FOR ACTIVE MEMBERS OF THE
CITY OF PUEBLO POLICEMEN RETIREMENT SYSTEM
WHEREAS, Ordinance No. 6459 of the City of Pueblo amended the Pueblo Policemen
Retirement System ( "Plan ") for police officers of the City hired on or before April 8, 1978 who
retired on or after January 1, 1999 so as to increase the defined pension benefit from an amount
equal to 2.0% of average final compensation multiplied by number of years, and fraction thereof, of
credited service to an amount equal to 2.5% of average final compensation multiplied by number of
years, and fraction thereof, of credited service; and
WHEREAS, Ordinance No. 6459 also amended the Plan to provide for periodic adjustment
of member contribution rates by resolution of the City Council in order to achieve compliance with
statutory contribution requirements of the Plan and state law; and
WHEREAS, Section 6 of Ordinance No. 6459 specifically provided that the increase in
pension benefit was approved only to the extent that the member contribution provisions of said
Ordinance are also valid and enforceable, that such contribution provisions are not severable from
the benefit increase provisions of said Ordinance, and that in the event any portion of the
Ordinance is held to be invalid or unenforceable by the Fire and Police Pension Association
( "FPPA "), or any court or administrative agency, that the entire Ordinance shall be deemed void;
and
WHEREAS, in accordance with Part 3 of Article 30.5 of Title 31, C.R.S. (2001), Buck
Consultants, Inc., as the actuary ( "Actuary") designated by FPPA, has determined that annual
required contributions necessary to pay the Plan's current service costs and eliminate unfunded
liabilities must increase to $449,204 per year commencing January 1, 2003, which represents a
contribution rate equal to 26.862% of payroll for said members; and
WHEREAS, §31- 30.5 -304, C.R.S. (2001) and Pueblo Municipal Code §2- 3 -29(d) authorize
City Council to increase the rate of contributions of active members of the Plan to an amount equal
to ten percent (10 %) of salary; and
WHEREAS, with active member contributions increased to 10% of salary, the City will still
be obligated to increase the employer contributions to an amount equal to 16.862% of salary, or
approximately $285,660; this amount represents approximately $10,987 per covered employee;
and
WHEREAS, it is fair, reasonable and appropriate for members of the Plan to make
reasonable contributions to their Plan as provided by law; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
Effective on December 31, 2002 at 11:59 p.m., and thereafter unless and until subsequently
modified pursuant to the provisions of Pueblo Municipal Code §2- 3 -29(c) and (d), the rate of
contributions of active members of the Plan, as defined in Chapter 3 of Title 11 of the Pueblo
Municipal Code, shall be ten percent (10 %) of salary, to be deducted from salary of said members
and remitted to FPPA in accordance with the Plan and law.
SECTION 2
This Resolution shall become effective immediately upon passage and approval.
INTRODUCED November 25, 2002
BY Al Gurule
Councilperson
APPROVED:
,.,
ATTEST: resident of City Council
City C