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RESOLUTION NO. 13417
A RESOLUTION APPROVING THE ICMA RETIREMENT
CORPORATION PROTOTYPE MONEY PURCHASE PLAN AND
TRUST ADOPTION AGREEMENT AND AUTHORIZING THE
PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
WHEREAS, the City of Pueblo participates in the ICMA Retirement Corporation (“ICMA”)
sponsored defined contribution money purchase plan (“Plan”) on behalf of its management
employees who have elected to be exempted from membership in the Public Employee
Retirement Association, and
WHEREAS, ICMA has caused the Plan to be amended and restated in the form of ICMA
Retirement Corporation Prototype Money Purchase Plan and Trust to conform with applicable law
and Internal Revenue Service’s regulations; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The ICMA Retirement Corporation Prototype Money Purchase Plan and Trust Adoption
Agreement (“Agreement”) establishing a money purchase plan and trust on behalf of the City’s
management employees who have elected to be exempted from membership in the Public
Employees Retirement Association, a copy of which is attached hereto and incorporated herein,
having been approved as to form by the City Attorney, is hereby approved. The President of City
Council is authorized to execute Agreement in the name of the City and the City Clerk is directed
to affix the seal of the City thereto and attest same.
SECTION 2.
The officers and staff of the City are directed and authorized to perform any and all acts
consistent with the intent of this Resolution and the attached Adoption Agreement to effectuate
the policies and procedures described therein.
SECTION 3.
This Resolution shall become effective immediately upon final passage.
INTRODUCED April 25, 2016
BY: Ed Brown
City Clerk’s Office Item # M-1
COUNCIL MEETING DATE: April 25, 2016
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Roni Kimbrel, Director of Finance
Marisa Pacheco, Human Resources Director
SUBJECT: A RESOLUTION APPROVING THE ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN AND TRUST ADOPTION
AGREEMENT AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO
EXECUTE SAME
SUMMARY:
This resolution will approve the amended and restated ICMA Retirement Corporation Prototype
Money Purchase Plan and Trust Adoption Agreement (“Agreement”).
PREVIOUS COUNCIL ACTION:
Resolution 6960 passed and approved July 13, 1992 establishing the Plan.
Resolution 6999 passed and approved September 14, 1992 restating and establishing the Plan.
Resolution 7698 passed and approved September 11, 1995 approving amendments and restating
the Plan.
BACKGROUND:
In 1992, the City contracted with ICMA Retirement Corporation (“ICMA”) to offer a 401(a)
retirement savings plan (“Plan”) for management employees who have elected to be exempt from
membership in the Public Employee Retirement Association. Periodically, the Plan must be
amended and restated to reflect and comply with current IRS regulations. The proposed
Resolution and related Agreement will ensure that the Plan continues to be operated in
compliance with such regulations.
FINANCIAL IMPLICATIONS:
None.
BOARD/COMMISSION RECOMMENDATION:
Not applicable.
STAKEHOLDER PROCESS:
Not applicable.
ALTERNATIVES:
Without the Agreement, the City may be in violation of IRS regulations and subject to IRS
penalties.
RECOMMENDATION:
Attachments: Agreement
INA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ICMAKC.
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN&TRUST
ADOPTION AGREEMENT
Plan Number 109168 —
The Employer hereby establishes a Money Purchase Plan and Trust to be known as CITY OF PUEBLO
(the"Plan") in the form of the ICMA Retirement Corporation Governmental Money Purchase Plan and Trust.
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
® Yes C3No
If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates:
CITY OF PUEBLO
I. Employer: CITY OF PUEBLO
IL Effective Dates
• I. Effective Date of Restatement. If this document is a restatement of an existing plan, the effective date of the
Plan shall be January 1, 2007 unless an alternate effective date is hereby specified:
(Note:An alternate effective date can be no earlier than January 1,2007.)
® 2. Effective Date of New Plan. If this is a new Plan,the effective date of the Plan shall be the first day of the Plan Year
during which the Employer adopts the Plan,unless an alternate Effective Date is hereby specified:
3. Special Effective Dates. Please note here any elections in the Adoption Agreement with an effective date that is
different from that noted in 1,or 2.above.
(Note provision and effective date.)
III. Plan Year will mean:
® The twelve (12)consecutive month period which coincides with the limitation year. (See Section 5.03(f)of the Plan.)
QThe twelve(12)consecutive month period commencing on 01/01 and each anniversary thereof.
IV. Normal Retirement Age shall be age 59.5 (not to exceed age 65).
Important Note to Employers.Normal Retirement Age is significant for determining the earliest date at which the Plan may
allow for in-service distributions.Normal Retirement Age also defines the latest date at which a Participant must have a fully
vested right to his/her Account.There are IRS rules that limit the age that may be specified as the Plan's Normal Retirement
Age.The Normal Retirement Age cannot be earlier than what is reasonably representative of the typical retirement age for the
industry in which the covered workforce is employed.An age under 55 is presumed not to satisfy this requirement,unless the
Commissioner of Internal Revenue determines that the facts and circumstances show otherwise.
Whether an age between 55 and 62 satisfies this requirement depends on the facts and circumstances,but an Employer's good
Money Purchase Plan Adoption Agreement
1
Whether an age between 55 and 62 satisfies this requirement depends on the facts and circumstances,but an Employer's good
faith, reasonable determination will generally be given deference.A special rule, however,applies in the case of a plan where
substantially all of the participants in the plan are qualified public safety employees within the meaning of section 72(t)(10)(B)
of the Code,in which case an age of 50 or later is deemed not to be earlier than the earliest age that is reasonably representative
of the typical retirement age for the industry in which the covered workforce is employed.
V. ELIGIBILITY REQUIREMENTS
1. The following group or groups of Employees are eligible to participate in the Plan:
All Employees
-All Full Time Employees
_Salaried Employees
Non union Employees
- Management Employees
Public Safety Employees
General Employees
x Other Employees(Specify the group(s)of eligible employees below.Do not specify employees by name.Specific positions are
acceptable.) Manaaementin Empp�F(Elected EP pursuant&Appointed}5who8ho ha ava sted 31-30-1003(7)ob CRS.exempt from
membershipThe group specified must correspond to a group of the same designation that is defined in the statutes,ordinances,
rules,regulations, personnel manuals or other material in effect in the state or locality of the Employer. The eligibility
requirements cannot be such that an Employee becomes eligible only in the Plan Year in which the Employee terminates
employment. Notes As stated in Sections 4.07 and 4.08, the Plan may, however, provide that Final Pay Contributions or
Accrued Leave Contributions are the only contributions made under the Plan.
2. The Employer hereby waives or reduces the requirement of a twelve(12) month Period of Service for participation.
The required Period of Service shall be(write NIA if an Employee is eligible to participate upon
employment)NIA
If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment Classification.
3. A minimum age requirement is hereby specified for eligibility to participate.The minimum age requirement is N/A (not
to exceed age 21.Write N/A if no minimum age is declared.)
VI. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows: (Choose all that apply,but at least one of Options A or B. If Option A is no
selected, Employer must pick up Participant Contributions under Option B.)
Fixed Employer Contributions With or Without Mandatory Participant Contributions.(If Option B is chosen,please
complete section C.)
® A. Employer Contribution&The Employer shall contribute on behalf of each Participant to %of Earnings or
$ N/A for the Plan Year(subject to the limitations of Article V of the Plan).
Mandatory Participant Contributions
C3 are required ® are not required
to be eligible for this Employer Contribution.
Ca B. Mandatary Participant C.ontributimu for Plan participation,
Required ManditQry
ConrributiQM A Participant is required to contribute(subject to the limitations of Article V
of the Plan) the specified amounts designated in items(i) through (iii)of the Contribution Schedule below:
® Yes
® No
Money Purchase Plan Adoption Agreement 2
Employee Opt-In Mandatory Contributions. Each Employee eligible to participate in the Plan shall be given the
opportunity to irrevocably elect to participate in the Mandatory Participant Contribution portion of the Plan by
electing to contribute the specified amounts designated in items(i) through(iii) of the Contribution Schedule
below for each Plan Year(subject to the limitations of Article V of the Plan):
® Yes 0=4No
Contribution Shedule.
(i) 8 tyo of Earnings,
(ii) $ N/A ,or
(iii) a whole percentage of Earnings between the range of (insert range of
percentages between 1%and 20%inclusive(e.g..3%, 6%, or 20%;5%to 7%)),as designated by the
Employee in accordance with guidelines and procedures established by the Employer for the Plan Year
as a condition of participation in the Plan.A Participant must pick a single percentage and shall not have the
right to discontinue or vary the rate of such contributions after becoming a Plan Participant.
Emplaer" i uu".The Employer hereby elects to"pick up' the Mandatory Participant Contributions' (pick
up is required if Option A is not selected).
Yes ® No ("Yes"is the default provision under the Plan if no selection is made.)
® C. Election Window(Complete if Option B is selected):
Newly eligible Employees shall be provided an election window of 30 days(no more than 60 calendar
days)from the date of initial eligibility during which they may make the election to participate in the Mandatory
Participant Contribution portion of the Plan. Participation in the Mandatory Participant Contribution portion of
the Plan shall begin the first of the month following the end of the election window.
An Employee's election is irrevocable and shall remain in force until the Employee terminates employment or
ceases to be eligible to participate in the Plan. In the event of re-employment to an eligible position,the
Employee's original election will resume.In no event does the Employee have the option of receiving the pick-up
contribution amount directly.
2. The Employer may also elect to contribute as follows:
0 A. Fixed Employer Match of Voluntary After-Tax Participant Contributions.The Employer shall contribute on behalf
of each Participant_%of Earnings for the Plan Year(subject to the limitations of Article V oldie Plan) for each
Plan Year that such Participant has contributed %of Earnings or$ Under this option,there is a
single, fixed rate of Employer contributions, but a Participant may decline to make the required Participant
contributions in any Plan Year, in which case no Employer contribution will be made on the Participant's behalf in
that Plan Year,
0 B. Variable Employer Match of Voluntary After-Tax Participant C:nntributions,The Employer shall contribute on
behalf of each Participant an amount determined as follows(subject to the limitations of Article V of the Plan):
% of the Voluntary Participant Contributions made by the Participant for the Plan Year(not including
Participant contributions exceeding %of Earnings or$ 1:
1 Neither an IRS advisory letter nor a determination letter issued to an adopting Employer is a ruling by the Internal Revenue. Service that
Participant contributions that are "picked up"by the Employer are not includable in the Participant's gross income for federal income tax
purposes. Pick-up contributions arc not mandated to receive private letter rulings:however, if an adopting employer wishes to receive a
ruling on pick-up contributions they may request one in accordance with Revenue Procedure 2012-1(or;ubtequent guidance).
3
Money Purchase Plan Adoption Agreement
PLUS %of the contributions made by the Participant for the Nan Year In excess of those included in the
above paragraph(but not including Voluntary Participant Contributions exceeding in
the aggregate %of Earnings or$ ).
Employer Matching Contributions on behalf of a Participant for a Plan Year shall not exceed
$ or %of Earnings,whichever is more or less.
3, Each Participant may make a voluntary(unmatched),after tax contribution,subject to the limitations of Section 4.05 and
Article V of the Plan:
0 Yes 0 No ("No"is the defaultprovision under the Plan if no selection is made.)
4. Employer contributions for a Plan Year shall be contributed to the Trust in accordance with the following payment schedule
(no later than the 15th day of the tenth calendar month following the end of the calendar year or fiscal year(as applicable
depending on the basis on which the Employer keeps its books)with or within which the particular Limitation year ends,
or in accordance with applicable law):
MONTHLY
5. Participant contributions for a Plan Year shall be contributed to the Trust in accordance with the following payment
schedule(no later than the 15th day of the tenth calendar month following the end of the calendar year or fiscal year(as
applicable depending on the basis on which the Employer keeps its books)with or within which the particular Limitation
year ends, or in accordance with applicable law):
MONTHLY
6. In the case of a Participant performing qualified military service (as defined in Code section 414(u))with respect CO the
Employer.
A. Plan contributions will be made based on differential wage payments:
0 Yes 0 No ("Yes"is the default provision under the Plan if no selection is made)
If yes is selected, this is effective beginning January 1, 2009 unless another later effective date is fillcdjure;
B. Participants who die or become disabled will receive Plan contributions with respect to such service:
0 Yes ® No("No"is the default provision under the Plan if no selection is made.)
If yes is selected,this is effective for parriclpants who died or became disabled while performing qualified military
service on or after January 1,2007,unless another later effective date is filled in Isere;
ti
s4
Money Purchase Plan Adoption Agreement 4
r
VII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan,shall include:
1. Overtime
Ycs 0 N
2. Bonuses
03 Yes ❑ No
3. Other Pay(specifically describe any other types of pay to be included below)
VIII. ROLLOVER PROVISIONS
1. The Employer will permit rollover contributions in accordance with Section 4.12 of the Plan:
® Yes ❑ No ("Yes"is the default provision under the Plan if no selection is made.)
2. Direct rollovers by non-spouse beneficiaries are effective for distributions after 2006 Itnless the Plan delmstimaking
tem available. If the Plan delayed making such rollovers available.check the box below and indicate the later effective
dare in the space provided.
Effective Date is
(Note: Plans must offer direct rollovers by iron-spouse beneficiaries no later than plan years beginning after
December 31,2009.)
IX. LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was)a
participant or could possibly become a participant, the Employer hereby agrees to limit contributions to all such plans as
provided herein,if necessary in order to avoid excess contributions (as described in Section 5.02 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer,the
provisions of Section 5.02(a)through(e) of the Plan will apply unless another method has been indicated below.
0 Other Method.(Provide the method under which the plans will limit total Annual Additions to the Maximum
Permissible Amount,and will properly reduce any excess amounts,in a manner that precludes Employer discretion.)
2. The Limitation Year is the following 12 consecutive month period:
3. Unless the Employer elects a delayed effective date below,Article 5 of the Plan will apply to limitations years beginning
on or after July 1, 2007.
(The effective date listed cannot be later than 90 days after the close of the first regular legislative session of the
legislative body with authority to amend the plan that begins on or af?erJuly 1,2007)
Money Purchase Plan Adoption Agreement 5
X. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule,subject to(1) the minimum vesting requirements and(2) the
concurrence of the Plan Administrator. (For the blanks below,enter the applicable percent—from 0 to 100 (with no entry after
the year in which 100%is entered),in ascending order.)
Period of
Service
Percent
Completed Vested
Zero _ 100
One 100 %
Two 100 %
Three _ 100 %
Four 100 %
Five 100 %
Six 100 %
Seven 100 %
Eight 100 %
Nine 100 %
Ten 100 %
XL WITHDRAWALS AND LOANS
1. In-service distributions are permitted under the Plan after a participant attains (select one of the below options):
O Normal Retirement Age
❑ Age 701("701/2"is the default provision under the Plan ern,selection is made.)
O Alternate age (after Normal Retirement Age):
O Not permitted at any age
2. A Participant shall be deemed to have a severance from employment solely for purposes of eligibility to receive distributions
from the Plan during any period the individual is performing service in the uniformed services for more than 30 days.
O Yes 1:/ No ("Yes"is the default provision under the plan env selection is made.)
3. Tax-free distributions of up to$3,000 for the direct payment of qualifying insurance premiums for eligible retired public
safety officers are available under the Plan.
O Yes ® No("No"is the default provision under the Plan ifno selection is made,)
4. In-service distributions of the Rollover Account are permitted under the Plan,as provided in Section 9.07.
O Yes No ("No"is the default provision under the Plan if no selection is made.)
5. Loans are permitted under the Plan, as provided in Article XIII of the Plan:
❑ Yes ® No("No"is the default provision under the Plan ifno selection is made.)
Money Purchase Plan Adoption Agreement 6
XII. SPOUSAL PROTECTION
The Plan will provide the following level of spousal protection(select one):
O 1. Participant Directed Election.The normal form of payment of benefits under the Plan is a lump sum.The
Participant can name any person(s)as the Beneficiary of the Plan,with no spousal consent required.
O 2. Beneficiary Spousal Consent Election (Article XII).The normal form of payment of benefits under the Nan is
a lump sum. Upon death,the surviving spouse is the Beneficiary,unless he or she consents to the Participant's
naming another Beneficiary. ("Beneficiary Spousal Consent Election"is the default provision under the Alae if
no selection is made.)
O 3. QJSA Election(Article XVII).The normal form of payment of benefits under the Plan is a 50%qualified joint
and survivor annuity with the spouse(or life annuity,if single).In the event of the Participant's death prior to
commencing payments, the spouse will receive an annuity for his or her lifetime.(If C is selected,the spousal consent
requirements in Article XII also will apply.)
XIII. FINAL PAY CONTRIBUTIONS
The Plan will provide for Final Pay Contributions if either I or 2 below is selected.
The following group of Employees shall be eligible for Final Pay Contributions:
O All Eligible Employees
O Other:
Final Pay shall be defined as (select one):
O A. Accrued unpaid vacation
O B. Accrued unpaid sick leave
O C. Accrued unpaid vacation and sick leave
0 D. Other(insert definition of Final Pay—must be leave that Employee would have been able to use if employment
had continued and must be bona fide vacation and/or sick leave):
"Final pay is the actual payment for time worked,vacation due,and payout of sick leave if hired before 01/01/1996"
1. Employer Final Pay Contribution.The Employer shall contribute on behalf of each Participant 10 _%of
Final Pay to the Plan (subject to the limitations of Article V of the Plan).
O 2. Employee Designated Final Pay Contribution.Each Employee eligible to participate in the Plan shall be
glven the opportunity at enrollment to irrevocably elect to contribute % (insert fixed percentage of final
pay to be contributed) or up to % (insert maximum percentage of final pay to be contributed)of Final Pay
to the Nan(subject to the limitations of Article V of the Plan).
Once elected, an Employee's election shall remain in force and may not be revised or revoked.
Money Purchase Plan Adoption Agreement 7
XIV ACCRUED LEAVE CONTRIBUTIONS
The Plan will provide for accrued unpaid leave contributions annually if either 1 or 2 is selected below.
The following group of Employees shall be eligible for Accrued Leave Contributions:
O All Eligible Employees
❑ Other:
Accrued Leave shall be defined as(select one):
O A. Accrued unpaid vacation
O B. Accrued unpaid sick leave
0 C. Accrued unpaid vacation and sick leave
O D. Other(insert definition of accrued leave that is bona fide vacation and/or sick leave):
O 1. Employer Accrued Leave Contribution.The Employer shall contribute as follows(choose one of the following
options):
0 For each Plan Year,the Employer shall contribute on behalf of each Eligible Participant the unused
Accrued Leave in excess of (insert number of hours/days/weeks(circle one)) to the Plan
(subject to the limitations of Article V of the Plan).
❑ For each Plan Year, the Employer shall contribute art behalf of each Eligible Participant %of
unused Accrued Leave to the Plan (subject to the limitations of Article V of the Plan).
0 2. Employee Designated Accrued Leave Contribution.
Each eligible Participant shall be given the opportunity at enrollment to irrevocably elect to contribute %
(insert fixed percentage of accrued unpaid leave to be contributed) or up to % (insert maximum percentage
of accrued unpaid leave to be contributed)of Accrued Leave to the Plan(subject to the limitations of Article V of
the Plan).Once elected,an Employee's election shall remain in force and may nor be revised or revoked.
XV. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality of one or more
units of stare or local government.
XVI. The Employer understands that this Adoption Agreement is ro be used with only the ICMA Retirement Corporation
Governmental Money Purchase Plan and Trust.This ICMA Retirement Corporation Governmental Money Purchase Plan
and Trust is a restatement of a previous plan, which was submitted to rhe Internal Revenue Service for approval on April 2,
2012,and received approval on March 31,2014.
The Plan Administrator hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section
14.05 of the Plan or of the discontinuance or abandonment of the Plan.The Employer understands that an amendment(s)
made pursuant to Section 14.05 of the Plan will become effective within 30 days of notice of the amendment(s) unless
the Employer notifies the Plan Administrator, in writing, that it disapproves of the amendment(s). If the Employer so
disapproves, the Plan Administrator will be under no obligation to act as Administrator under the Plan.
XVII. The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administrator pursuant to the terms and
conditions of the ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN 8r
TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
Money Purchase Plan Adoption Agreement 8
XVIII. The Employer hereby acknowledges It understands that failure to properly fill out this Adoption Agreement may result in
disqualification of the Plan.
XIX. An adopting Employer may rely on an advisory letter issued by the Internal Revenue Service as evidence that the Plan is
qualified under section 401 of the Internal Revenue Code to the extent provided In applicable IRS revenue procedures and
other official guidance.
In Witness Whereof,the Employer hereby causes this Agreement to be executed on this ,25 day of A?r.' ,20 % V .
EMPLOYER ICMA RETIREMENT CORPORATION
777 North Capitol St.,NE Suite 600
) Washington,DC 20002
4glf°
800-326-7272 /---- /
B 111111,‘ - By:
Print Name: Stephen G. Nawrocki Print'`�e: .. . I • 4 uhar
Title: P[Q ident of the City Council Title:
Assistant Sec`tart'
Attest:_ Attest:
L C /i ,
Gina etcher, ity er4
Money Purchase Plan Adoption Agreement 9