HomeMy WebLinkAbout06923ORDINANCE NO. 6923
AN ORDINANCE AMENDING CHAPTER 2 OF TITLE II OF THE PUEBLO MUNICIPAL CODE
RELATING TO FIREMEN'S PENSIONS AND TO TAX QUALIFICATION THEREOF
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (Brackets indicate matter
being deleted; underscoring indicates new matter being added)
SECTION 1
Paragraph (2) of subsection (m) of section 2 -2 -19 of Chapter 2 of Title II of the Pueblo
Municipal Code, as amended, is hereby amended to read as follows:
Sec.2 -2 -19. Deferred Retirement Option Program; benefits.
(m) (1) (unchanged)
(2) Regardless of the form of the payment the participant chooses, the
minimum distribution amount will be determined by FPPA and made in accordance
with Internal Revenue Code ( "Code ") Section 401(a)(9) and the regulations
thereunder, including the minimum distribution incidental death benefit requirement
[of income tax regulation Section 1.401(A)(9) -2. The minimum distribution is
recalculated by the FPPA annually on the basis of the life expectancy of the
participant and the participant's beneficiary, if applicable. If elected in writing before
the required beginning date under Code Section 401(A)(9) by the participant, and /or
the participant's spouse, if applicable, the expectancy of the participant and /or
participant's spouse shall be recalculated annually].
SECTION 2
Section 2 -2 -20 of Chapter 2 of Title II of the Pueblo Municipal Code, as amended, is hereby
amended to read as follows:
Sec. 2 -2 -20. Additional provisions applicable to plan (tax qualification).
(a) The compensation of each member taken into account for determining all
contributions under the plan for any year shall not exceed any applicable limit imposed by
the Internal Revenue Code ( "Code ") including but not limited to those set forth in Code
Section 401(a)(17) to the extent such limits apply to the plan or a particular member. The
limits of Code Section 401(a)(17) shall not apply to a member who first became a member
in the plan before January 1, 1996, or such later date as permitted by Treasury
Regulations.
(b) This plan, including the DROP feature, is subject to the limitations on
benefits imposed by Code Section 415(b) for government fire pension plans, which are
incorporated herein by this reference. Effective January 1, 1995, the mortality table used to
determine actuarial equivalence when such determination is required for this plan under
Code Section 415(b) shall be the mortality table prescribed by the Secretary of the Treasury
based on the Commissioner of the Internal Revenue Service's standard table used to
determine reserves for group annuity contracts on the date as of which present value is
being determined. The limitation year shall be the plan year. For distributions with annuity
starting dates on or after December 31, 2002, the mortality table used for purposes of
adjusting any benefit or limitation under Code section 415(b) is the table prescribed in Rev.
Rul. 2001 -62.
(c) Notwithstanding any provisions of this plan to the contrary, contributions,
benefits and service credit with respect to qualified military service will be provided in
accordance with Section 414(u) of the Internal Revenue Code.
(d) For distributions made on or after January 1, 1993, a distributee may elect to
have any portion of an eligible rollover distribution paid directly to an eligible retirement plan
specified by the distributee in a direct rollover. For purposes of applying this Subsection,
the following definitions shall apply:
(1) Direct rollover. A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
(2) Distributee: A distributee includes a member or former member. In
addition, the member's or former member's surviving spouse and the member's or
former member's spouse are distributees with regard to the interest of the spouse or
former spouse.
(3) Eligible retirement plan: An eligible retirement plan is an individual
retirement account described in Section 408(a) of the Code, an individual retirement
annuity described in Section 408(b) of the Code, an annuity plan described in
Section 403(a) of the Code or a qualified trust described in Section 401(a) of the
Code that accepts the distributee's eligible rollover distribution. However, in the
case of an eligible rollover distribution to the surviving spouse, an eligible retirement
plan is an individual retirement account or individual retirement annuity.
Effective January 1, 2002, an eligible retirement plan shall also mean an
annuity contract described in Code section 403(b) and an eligible plan under Code
section 457(b) which is maintained by a state, political subdivision of a state, or
agency or instrumentality of a state or political subdivision of a state and which
agrees to separately account for amounts transferred into such elan from this Plan.
The definition of eligible retirement plan shall also apply in the case of a distribution
to a surviving spouse, or to a spouse or former spouse who is the alternate payee
under a qualified domestic relation order, as defined in Code section 414(p).
(4) Eligible rollover distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the distributee, except
that an eligible rollover distribution does not include:
a. Any distribution that is one (1) of the series of substantially
equal periodic payments (not less frequently than annually) made for the life
(or life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten (10) years or more;
b. Any distribution to the extent such distribution is required
under Section 401(a)(9) of the Code; and
C. The portion of any distribution that is not includable in gross
income.
For distributions on or after January 1. 2002, a portion of distribution shall
not fail to be an eligible rollover distribution merely because the portion consists of
after -tax employee contributions which are not includable in gross income.
However, such portion may be paid only to an individual retirement account or
annuity described in section 408(a) or (b) of the Code, or to a qualified defined
contribution plan described in section 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 includable in gross income and the portion
of such distribution is not so includable.
SECTION 3
This Ordinance shall become effective thirty (30) days after final passage and approval;
provided, however, that notwithstanding the foregoing, this Ordinance shall not become effective
(a) unless approved by sixty-five percent of the active members of the Pueblo Firemen's Pension
Fund and (b) unless the Board of Directors of the Fire and Police Pension Association established
pursuant to section 31 -31- 201(1), C.R.S. (Vol. 9, 2002) shall decide to permit said modifications
pursuant to Section 31- 30.5- 210(2), C.R.S. (Vol. 9, 2002); and Section 1 of this Ordinance is
intended to apply on and after January 1, 2003; the amendment to PMC §2- 2 -20(b) made by this
Ordinance is intended to apply to distributions on or after December 31, 2002; and the amendment
to PMC §2- 2 -20(d) made by this Ordinance are intended to apply as of January 1, 2002. For such
purpose, on its effective date, this Ordinance shall constitute and be construed to be a request by
the City to FPPA to so permit the said modifications to the Pueblo Firemen's Pension Fund.
INTRODUCED December 9. 2002
BY Al Gurule
Councilperson
APPROVED:
resident of City Council
ATTEST:
City C
PASSED AND APPROVED: December 23, 2002