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HomeMy WebLinkAbout09851ORDINANCE NO. 9851 AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA), TO ALLOW EMPLOYEES TO PARTICIPATE IN THE ROTH OPTION OF THE PERA 401(K) PLAN AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The PERA 401(k) Plan Participation Agreement (“Agreement”), between the City of Pueblo and Colorado PERA, a copy of which is attached hereto and incorporated herein by this reference, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The Mayor is authorized to execute and deliver the 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 3. The officers and staff of the City are authorized and directed to perform any and all acts consistent with this Ordinance and the attached Agreement, to implement the policies and procedures described therein. SECTION 4. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on December 14, 2020. Final adoption of Ordinance by City Council on December 28, 2020 . President of City Council Action by the Mayor: ☒ Approved on December 30, 2020 . □ Disapproved on _______________ based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-12 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 14, 2020 TO: President Dennis E. Flores and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, City Clerk FROM: Marisa Pacheco, Director of Human Resources Charles Hernandez, Director of Finance SUBJECT: AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA), TO ALLOW EMPLOYEES TO PARTICIPATE IN THE ROTH OPTION OF THE PERA 401(K) PLAN AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT SUMMARY: The proposed Ordinance approves a Participation Agreement between the City of Pueblo (“City”), and Colorado PERA to permit employees to participate in the Roth portion of the currently established 401(k) Plan. PREVIOUS COUNCIL ACTION: None. BACKGROUND: The City currently offers several retirement savings programs including a Roth IRA through ICMA. Interest has been expressed by some employees in gaining access to the Roth product through PERA. Offering a Roth option to employees is beneficial to members because contributions to this option are taxed prior to the money being deposited into the Plan. By paying taxes on the contributions up front, this eliminates the member’s obligation to pay taxes at the time of distribution, thereby allowing any investment earnings to grow tax free, as well as allowing for tax-free withdrawals at retirement. Participation in the Plan is strictly voluntary. Members will have the option to choose if they want to have their contributions deducted pre-tax or post-tax. FINANCIAL IMPLICATIONS: None. This is an entirely voluntary program to which employees may contribute. The City does not match funding or contribute to the program. BOARD/COMMISSION RECOMMENDATION: Not Applicable. STAKEHOLDER PROCESS: Not Applicable. ALTERNATIVES: This is the only post-tax option currently available under the PERA 401(k) Plan and represents a good retirement investment option. The alternative would be no action which would mean the City not participating in the program. RECOMMENDATION: Pass and approve the proposed Ordinance. Attachments: Agreement Spo!Cblfs Fyfdvujwf!Ejsfdups Kbovbsz!25-!3132