HomeMy WebLinkAbout08804ORDINANCE NO. 8804
AN ORDINANCE AMENDING CHAPTER 3 OF TITLE II OF
THE PUEBLO MUNICIPAL CODE RELATING TO OLD-
HIRE POLICEMEN RETIREMENT PLAN AND
CONFORMING SAME TO REQUIREMENTS OF FEDERAL
LAW
WHEREAS, the City of Pueblo, Colorado (“City”) maintains the Pueblo
Policemen Retirement Plan (“Plan”) for those uniformed employees of the City Police
Department hired prior to April 8, 1978; and
WHEREAS, the City has amended the Plan various times to make amendments
to the Plan as necessary to maintain the tax qualified status of the Plan; and
WHEREAS, the City wishes to amend the Plan to clarify the application of the
Plan with respect to the terms “spouse” and “legally married” in compliance with federal
law and specifically I.R.S. Revenue Ruling 2013-17; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate
matter being deleted, underscoring indicates new matter being added)
SECTION 1.
Section 2-3-2 of Chapter 3, Title II of the Pueblo Municipal Code, as amended, is
hereby amended by the addition of a new subsection (18) to read as follows:
Sec. 2-3-2. Definitions.
The following words and phrases as used in this Chapter, unless a
different meaning is plainly required by the context, shall have the following
meanings:
. . .
(18) For purposes of federal tax laws applicable to this plan, the
terms “spouse” and “legally married” are defined according to federal tax
laws, including Rev. Rul. 2013-17 and subsequent regulations and rulings,
and include a spouse lawfully married under the laws of any state, the
District of Columbia, a U.S. territory or a foreign jurisdiction, regardless of
whether the spouses remain residents of the state, territory or jurisdiction
in which they were married. For all other purposes, this Plan defines
“spouse” and “legally married” according to federal tax laws and, in
addition, includes a party to a civil union under the Colorado Civil Union
Act. The application of the provisions of this Subsection (18) have been in
effect since and will continue in effect after May 1, 2013.
SECTION 2.
The officers of the City are directed and authorized to perform any and all acts
consistent with the intent of this Ordinance to effectuate the policies and procedures
described herein.
SECTION 3.
This Ordinance shall become effective upon final passage and approval;
provided, however, that notwithstanding the foregoing, this Ordinance shall not become
effective until the Board of Directors of the Fire and Police Pension Association
established pursuant to Section 31-31-201(1), C.R.S. ("FPPA") shall decide to permit
said modifications pursuant to Section 31-30.5-210(2), C.R.S. This Ordinance shall
constitute and be construed to be a request by the City to FPPA to permit said
modifications to the Plan.
INTRODUCED: November 24, 2014
BY: Eva Montoya
PASSED AND APPROVED: December 8, 2014
City Clerk’s Office Item # R-6
Background Paper for Proposed Ordinance
COUNCIL MEETING DATE: November 24, 2014
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Robert P. Jagger, Assistant City Attorney
SUBJECT: AN ORDINANCE AMENDING CHAPTER 3 OF TITLE II OF THE PUEBLO
MUNICIPAL CODE RELATING TO OLD-HIRE POLICEMEN RETIREMENT
PLAN AND CONFORMING SAME TO REQUIREMENTS OF FEDERAL LAW
SUMMARY:
The proposed Ordinance amends the Old Hire Police Pension Plan (“Plan”) to make compliant
with federal tax law and specifically IRS Notice 2014-19. The Plan is applicable to police
officers hired prior to April 8, 1978. To be compliant with federal tax law, the amendment must
be made before January 1, 2014.
PREVIOUS COUNCIL ACTION:
The Plan has on occasion been amended to comply with state and federal law including most
recently Ordinance No. 8549 passed and approved December 10, 2012.
BACKGROUND:
Pursuant to IRS Notice 2014-19, any retirement plan qualification rule that applies because a
participant is married must be applied with respect to a participant who is lawfully married under
state law to an individual of the same sex. The State of Colorado requires the Plan to include
civil unions even though the IRS does not allow the Plan to treat civil unions as married spouses
for tax law purposes. The proposed amendment satisfies federal tax law where applicable to
the Plan and complies with State law for all other purposes.
FINANCIAL IMPLICATIONS:
None. The City is unaware of any police officer hired prior to 1978 who would be affected by
this amendment, but whether amended or not, the obligations exist pursuant to federal and/or
state law.
BOARD/COMMISSION RECOMMENDATION:
The Plan Trustees have met and approved the proposed Ordinance.
STAKEHOLDER PROCESS:
Not applicable.
ALTERNATIVES:
Not approve the Ordinance, however, failure to be in compliance with federal tax law would
result in revocation of tax deferred status of the Plan and related tax consequences and liability
to employee covered by the Plan and potentially City.
RECOMMENDATION:
Pass and approve the proposed Ordinance.
Attachments:
None.