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HomeMy WebLinkAbout06740ORDINANCE NO. 6740 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 Chapter 2 of Title II of the Pueblo Municipal Code, as amended, is hereby amended by the addition of a new section 2 -2 -20 thereto, to read as follows: Sec. 2 -2 -20. Additional Provisions Applicable to Plan (Tax Oualification) Caj The compensation of each member taken into account for determining all contributions under the plan for M 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 O 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. Lc) 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 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 section 2- 2- 20(d), the following definitions shall apply: W 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: any distribution that is one of a 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 years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code; and the portion of any distribution that is not includable in gross income Q 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. 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. Direct rollover: A direct rollover is a payment bythe plan to the eligible retirement plan specified by the distributee SECTION 2 This Ordinance shall become effective thirty (30) days after final passage and approval or the date upon which the City receives a Favorable Determination Letter from the Internal Revenue Service with respect to the modifications made by this Ordinance to the Pueblo Firemen's Pension Fund, whichever is later; 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, 2000) shall decide to -2- permit said modifications pursuant to Section 31- 30.5- 210(2), C.R.S. (Vol. 9, 2000). For such purpose, on its effective date, this Ordinance shall constitute and be construed to be a request by the City to so modify the Pueblo Firemen's Pension Fund. INTRODUCED: September 24 , 2001 By: Ri ch APPROVED: ATTESTED BY: \... City Clerk PASSED AND APPROVED: October 9, 2001 Council -3-