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HomeMy WebLinkAbout7667RESOLUTION NO. 7667 A RESOLUTION RATIFYING AND APPROVING THE RESTATED ADOPTION AGREEMENT DATED APRIL 22, 1992 ADOPTING THE MODEL FPPA DEFERRED COMPENSATION PLAN (AS OF JANUARY 1, 1991) AND RABBI TRUST AGREEMENT, AND APPROVING THE ADOPTION AGREEMENT FOR THE FIRST AMENDMENT AND ADOPTION AGREEMENT FOR THE SECOND AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, the Restated Adoption Agreement dated April 22, 1992 adopting the Model FPPA Deferred Compensation Plan (as of January 1, 1991) ('Plan ") and Rabbi Trust Agreement was approved by the City of Pueblo, and WHEREAS, certain amendments to the Plan have been adopted by Fire and Police Pension Association ( "FPPA ") and need to be adopted by the City, and WHEREAS, the Plan is a deferred compensation plan and allows an actively employed FPPA Member to participate in the Plan through payroll deductions and to defer taxes, and WHEREAS, the City does not make contributions to the Plan on behalf of eligible employees; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Restated Adoption Agreement dated April 22, 1992 adopting the Model FPPA Deferred Compensation Plan (as of January 1, 1991) and Rabbi Trust Agreement is hereby approved, confirmed and ratified. SECTION 2 The Adoption Agreement For The First Amendment To The Model FPPA Deferred Compensation Agreement and the Adoption Agreement For The Second Amendment To The Model FPPA Deferred Compensation Plan, copies of which are attached hereto, are hereby approved. The President of the City Council is authorized to execute the Adoption Agreements in the name of the City. INTRODUCED: July 10, 1995 ATTEST: City Cler (Acting) By John C'alifano Councilperson President of the City Council -2- ADOPTION AGREEMENT FOR THE SECOND AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN WHEREAS. by means of an Adoption Agreement dated April 22 , 19 the Employer and the FPPA have previously adopted the Model FPPA Deferred Compensation Plan for the benefit of eligible employees of the Employer; and WHEREAS, by means of an Adoption Agreement dated ,111 l 10 , 19ga. the Employer has previously adopted the First Amendment to the Model FPPA Deferred Compensation Plan, as approved by the FPPA Board of Directors; and WHEREAS, the Employer has been advised that the FPPA Board of Directors has now approved the SECOND AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN attached hereto; and WHEREAS, the Employer desires to amend the terms of its Deferred Compensation Plan to conform to the terms of the Model FPPA Deferred Compensation Plan, as amended, NOW, THEREFORE, the Employer hereby adopts the SECOND AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN as an amendment to its Deferred Compensation Plan to be effective January 1 , 1995 The undersigned certifies that the foregoing Adoption Agreement was approved by action of the Employer on july 10 , 1995. Employer: PUEBLO, A MUNICIPAL CORPOR r By. Title: President of the City Council SECOND AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN WHEREAS, the MODEL FPPA DEFERRED COMPENSATION PLAN (as of December 7, 1994) (the "Plan ") has previously been approved by the FPPA Board of Directors; and WHEREAS, Section 7.01 of the Plan provides that the Plan may be amended by action of the FPPA as Trustee; and WHEREAS, the F I-'PA Board of Directors has been advised that it is necessary to amend the terms of the Plan in the respects set forth herein; and WHEREAS, the FPPA Board of Directors has determined that the amendments set forth herein are appropriate. NOW, THEREFORE, the FPPA Board of Directors hereby resolves that the terms of the Plan shall be amended in the following respects: 1. Section 4.02(b) is revised to read as follows: (b) Participant Election Within 60 days after Separation from Service, a Participant may make a one -time election of a specific date for commencement of benefits that is the first day of a month,.provided that the date elected is not earlier than the earliest "Benefit Commencement Date" determined under Section 4.02(a) and is not later than the "Latest Commencement Date" determined under Section 4.02(f), and may also make an election of a form of payment. The election of a date for commencement of payment of benefits is irrevocable. The election of a form of payment may be changed once, provided that the notice of the change is received by the Administrator by not later than 30 days before the date on which benefit payments are to commence and that the change of form of payment is irrevocable. 2. A new Section 4.02(c) is added to read as follows: (c) Failure to Make Timelv Election if a Participant fails to make an election: of a date for commencement of benefits within the time period specified in Section_ 4.02(b), then benefit payments will commerce on the first day of a month TJP \1763 \117383.1 that is coincident- with or i mmieoiateIy = ollcws 60 days after the later of (1) the date cn which the Participant attains ace 60, or (2) t:: ^.e date of the Participant's Secaration from Service. If a Participant fails to make an election_ c= a form of Pavme_nt wit :1n the time peri cd speci= i e^ in Section 4.02(b), then the benefit will ce paid in the form of a Lump Sum. 3. Present Sections 4 . 02 (c) , (d) , and (e) are redesignated as Sections 4.02(d), (e) and (f), respectively. entirety. 4. Present Section 4.02(f) is deleted in its 5. Present Section 5.01 Election, is amended to read as follows: Election A Participant or Beneficiary may elect the form of payment of benefits pursuant to Section 4 . 02 (b) . 6. Section 5.02 Forms of Payment, is amended by addinc'a new subsection (d) to read as follows: (d) Combination A lump sum cash payment of a portion of the balance in a Participant's account, with the balance of the account to be paid in substantially equivalent monthly, quarterly, semi- annual or annual installments as specified by the Participant. The election of a schedule of installment payments is irrevocable. entirety. 7. Section 5.04 Failure to Elect, is deleted in its 8. Section 7.01 Amendment, is amended by designating the present first paragraph as (a), by deleting the present second paragraph, and by adding a new second paragraph to read as follows: (b) The Trustee may propose an amendment to the Plan at any time by written notice to the Employer at least 30 days before the effective date of the amendment. If the Trustee approves an amendment to the Plan, such amendment shall automatically be effective with respect to the Employer unless the Employer notifies the Trustee in writing within 60 days after the date of approval of the amendment that the Employer objects to the amendment. The Trustee shall be under no obligation to continue T]P \47 263\11 -383.1 -2- to act as Trustee or Administrator if the Employer disapproves of any amendment. IN WITNESS WHEREOF, the undersigned certify that the foregoina SECOND AMENDMENT was approved by the FPPA Board of Directors at a regular meeting called and held on April 26, 1995. BY: , - Chair, FPPA Board of Directors Attest: R, . - Secretary, FPPA Board of Directors TJP \4763 \117383.1 -3- x •, 7 ADOPTION AGREEMENT FOR THE FIRST AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN WHEREAS, by means of an Adoption Agreement dated April 22 , 19 the Employer and the FPPA have previously adopted the Model FPPA Deferred Compensation Plan for the benefit of eligible employees of the Employer; and WHEREAS, the Employer has been advised that the FPPA Board of Directors has approved the FIRST AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN attached hereto; and WHEREAS the Employer desires to amend the terms of its Deferred Compensation Plan to conform to the terms of the Model FPPA Deferred Compensation Plan, as amended. NOW, THEREFORE, the Employer hereby adopts the FIRST AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN as an amendment to its Deferred Compensation Plan to be effective January 1 , 19 95 . The undersigned certifies that the foregoing Adoption Agreement was approved by action of the Employer on July 10 , 19 95 . PUEBLO, A MUNICIPAL CORPORATION By: C� Title: President of the City Cou ncil TJP\45558 \103509.1 FIRST AMENDMENT TO THE MODEL FPPA DEFERRED COMPENSATION PLAN WHEREAS, the MODEL FPPA DEFERRED COMPENSATION PLAN (as of January 1, 1991) (the "Plan ") has previously been approved by the FPPA Board of Directors and has received a favorable ruling from the Internal Revenue Service; and WHEREAS, Section 7.01 of the Plan provides that the Plan may be amended by action of the FPPA as Trustee; and WHEREAS, the FPPA Board of Directors has been advised that it is necessary to amend the terms of the Plan in the respects set forth herein; and WHEREAS, the FPPA Board of Directors has determined that the amendments set forth herein are appropriate. NOW, THEREFORE, the FPPA Board of Directors hereby resolves that the terms of the Plan shall be amended in the following respects: 1. Section 3.05 The last sentence of the current provision is deleted and is replaced by the following new sentence: Deferral suspensions and resumptions can be made at any time. 2. Section 4.02(b) is amended by deleting the present last sentence and replacing it with a new last sentence that reads as follows: Subject to Section 4.02(e), a Participant may elect that benefits commence on any determinable future date that is on the first day of the month that is coincident with or immediately follows the latest of the dates specified in Section 4.02(a). 3. Section 4.02(c) is amended by deleting the present first sentence and replacing it with a new first sentence that reads as follows: Subject to Section 4.02(e), a spouse Beneficiary entitled to benefits may make a one -time irrevocable election to defer commencement of benefits to a date that is on the first day of the month that is coincident with or immediately follows the latest of the dates specified in Section 4.02(a). TJM45558 \103500.1 4. Section 4.02(e) is amended in its entirety to read as follows: Latest Commencement Date: Notwithstanding any other Plan provision to the contrary, benefits for a Participant or Beneficiary shall commence no later than the later of (i) April 1 of the calendar year following the calendar year in which the Participant attains age 70 -1/2, or (ii) 60 days after the date on which the Participant incurs Separation from Service with the Employer. 5. A new Section 4.02(f) is added to read as follows: (f) A Participant or Beneficiary who has not made a timely election of a form of payment and who, therefore, is subject to a lump sum payment pursuant to Section 5.04, may elect at any time to receive such payment at a date that is earlier than the required distribution date under Section 5.04 by submitting a completed election form to the Employer. 6. Section 5.02 Subparagraph (c) of the current provision is deleted and is replaced by the following new subparagraph: (c) Installments: Subject to the limitations of Section 5.03, periodic payments over a specified period of time or in specified annual dollar amounts. 7. Section 8.03 The third sentence of the current provision is deleted and is replaced by the following new sentence: A Participant or Beneficiary may change his or her allocation request once a month after earnings have been allocated, by notifying the Trustee in writing. With respect to the Model FPPA Deferred Compensation Plan, this First Amendment is effective on the date of its approval by the FPPA Board of Directors. With respect to the Deferred Compensation Plan of an Employer, the First Amendment is effective as of the date specified in the Employer's Adoption Agreement for the First Amendment. TJP\455581103500.1 -2- IN WITNESS WHEREOF, the undersigned certify that the foregoing FIRST AMENDMENT was approved by the FPPA Board of Directors at a regular meeting called and held on December 1994. By: C�Z' Chair, FPPA Board of Directors Attest: Secretary, FPPA Board of Directors TM45558 \103500.1 -3-