HomeMy WebLinkAboutResolution 98-08 01/20/1998
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SPRINGFIELD
NO. 98-~
A RESOLUTION OF THE CITY OF SPRINGFIELD AMENDING THE CITY OF
SPRINGFIELD, OREGON MONEY PURCHASE PENSION PLAN; AMENDING THE CITY
OF SPRINGFIELD, OREGON RETIREMENT PLAN; ADOPTING THE CITY OF
SPRINGFIELD, OREGON RETIREMENT PLAN TRUST; AND AUTHORIZING
DISCONTINUANCE OF GROUP RETIREMENT POLICIES AT PACIFIC LIFE.
WHEREAS, by Resolution No. 96-35 the City of Springfield adopted certain amendments
to the City of Springfield, Oregon Money Purchase Pension Plan (the "Pension Plan"); and
WHEREAS, by Resolution No. 97-18 the City of Springfield adopted certain amendments
to the City of Springfield, Oregon Retirement Plan (the "Retirement Plan"); and
WHEREAS, the City of Springfield desires to amend the Pension Plan to (1) admit
certain part-time employees as Participants, (2) defer distribution to laid-off employees while
they are on recall status, (3) provide for discontinuing Group Retirement Policy G-9214.02
issued by Pacific Life Insurance Company, (4) conform references made to the Retirement Plan
in the Pension Plan to amendments made to the Retirement Plan in this Resolution, and (5)
conform the Pension Plan to an amendment to the Internal Revenue Code; and
WHEREAS, the City of Springfield desires to amend the Retirement Plan to. (1) provide
for actuarial funding of Participants' benefits, (2) provide for discontinuing Group Retirement
Policy G-9214 issued by Pacific Life Insurance Company (3) clarify the manner in which
additional benefits are provided to public safety employees to match certain benefit increases
granted in 1991 and 1995 to members of the Oregon Public Employees Retirement System,
(4) delete outdated provisions, and (5) simplify the Retirement Plan; and
WHEREAS, the City of Springfield desires to adopt the City of Springfield, Oregon
Retirement Plan Trust (the "Retirement Plan Trust") to hold funds now held in Group
Retirement Policy G-9214 issued by Pacific Life Insurance Company;. and
WHEREAS, the City of Springfield desires to authorize discontinuance' of Group
Retirement Policies G-9214 and G-9214.02 issued by Pacific Life Insurance Company;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Springfield
as follows:
Section 1. The following amendments are made to the Pension Plan. The amendments
shall be effective January 1, 1998, except as otherwise stated below.
RESOLUTION NO. 98- 08
Page 1
a. Section 3.1. of the Pension Plan is amended to read as follows:
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3.1. In order to be initially eligible to participate in the Plan, an Employee must have
completed six (6) consecutive months of employment with the Employer measured from the Employee's
Employment Commencement Date and be described in anyone of the following Section 3.1.a. through 3.1.d,:
a. Be employed full-time (as determined in the sole discretion of the Employer) by the
Employer;
b. Be the Presiding Municipal Court Judge;
c. Effective for Compensation earned after December 31, 1997, and paid after January
31,1998, be employed part-time (as determined in the sole discretion of the Employer) by the Employer and
not be a Public Safety Employee or be included in a collective bargaining unit represented by (1) International
Association of Firefighters Local No. 1395, (2) Oregon Public Employees Union SEIU Local 503, AFL-CIO,
CLC Springfield City Employees, Local 995, or (3) Local 1148 American Federation of State, County and
Municipal Employees; or
d. Effective for Compensation earned after June 30,1999, and paid after July 31, 1999,
be employed part-time (as determined in the sole discretion of the Employer) by the Employer and be included
in the collective bargaining unit represented by Oregon Public Employees Union SEIU Local 503, AFL-CIO,
CLC Springfield City Employees, Local 995.
For this purpose (1) "part-time" includes only Employees regularly scheduled by the Employer to work 20 or
more hours per week and who are not employed full-time by the Employer and (2) Compensation earned after
December 31, 1997, or after June 30, 1999, shall include Compensation for paid leave taken after those dates.
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b.
Section 3.4. of the Pension Plan is amended to read as follows:
3.4. A Participant shall be eligible to receive an allocation of contributions hereunder only
for Compensation earned while described in anyone of Section 3.1.a. through 3.1.d.
c. Section 3.6. of the Pension Plan is amended to read as follows:
3.6. If a Participant incurs a Severance of Employment and is rehired, such former
Participant must once again meet the eligibility requirements of Section 3.1. measured from the former
Participant's Reemployment Commencement Date before resuming participation in the Plan. Upon completion
of the eligibility requirements of Section 3.1., the Participant shall enter the Plan on the Participant's Entry Date
subsequent to the Participant's Reemployment Commencement Date. In addition, if a Participant has incurred
a Severance of Employment and (a) is rehired and has an Accrued Benefit under the Plan, (b) is reinstated to
the Participant's position as a matter of legal right, or (c) is recalled consistent with Employer policies, such
Participant shall immediately be eligible to receive an allocation of contribution hereunder as of the date of such
rehire, reinstatement, or recall, but only for Compensation earned while described in anyone of Section 3.1.a.
through 3.1.d.
d. Section 4.2. of the Pension Plan is amended to read as follows:
4.2. The Employer shall contribute to the Plan on behalf of each Participant each month
a sum equal to the following:
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RESOLUTION NO. 98-08
Page 2
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a. An Employer contribution to be allocated to the Participant's Employer Contribution
Account equal to seven percent (7%) of the Participant's Monthly Earnings for each Participant who is a
full-time employee (as determined in the sole discretion of the Employer) and for the Presiding Municipal Court
Judge.
b. For Participants for whom Section 4.2.a. requires a contribution, an additional
Employer contribution to be allocated to the Participant's Pick-up Account based on the Participant's Monthly
'Earnings as follows:
Monthly Earnings:
Less than $1,500
Equal to or more than $1,500
Contribution Percentage:
6%
7%
The Employer reserves the right to require that the Employer contribution to be allocated to the Participant's
Pick-up Account be made pursuant to a salary reduction agreement, and the contribution shall be so made to
the extent required in such an agreement.
e. Section 6.1. of the Pension Plan is amended to read as follows:
6.1. Each Participant shall have a fully vested and nonforfeitable interest in the balance
of the Participant's Employer Contribution Account upon completion of sixty (60) months of-participation in
the Plan and/or the City of Springfield, Oregon Retirement Plan. A month of participation, for purposes of
this Section 6., shall be credited for each month:
a. In which a contribution is or has been made on behalf of the Participant pursuant
to Section 4.2.a. of the Plan or pursuant to Section 4.2.a. of the City of Springfield, Oregon Retirement Plan
as stated immediately before the January 20, 1998, restatement of that plan; or
b. For which credits have been made to the Participant's Employer Contribution
Account and Pick-up Account pursuant to Section 5.1.a. of the City of Springfield, Oregon Retirement Plan
as stated in or after the January 20, 1998, restatement of that plan.
Each Participant shall have a fully vested and nonforfeitable interest in the balances of the Participant's
Employee Required Contribution Account, Pick-up Account, and Voluntary Contribution Account.
f. Section 7.1. of the Pension Plan is amended to read as follows, effective for Plan
Years beginning after December 31, 1994:
7.1. Despite any other provision of the Plan, the maximum annual addition to the account
of any Participant in any Limitation Year shall not exceed the lesser of:
a. Thirty Thousand Dollars ($30,000), adjusted for increases in the cost of living as
permitted under regulations issued by the Secretary of Treasury or his delegate.
b. Twenty-five percent (25 %) of the Participant's compensation for the year; provided,
however, that such compensation limitation shall not include any contribution for medical benefits within the
meaning of IRC Section 401(h) or 419A(t)(2) which is otherwise treated as an annual addition under IRC
Section 415(1)(1) or 419A(d)(2).
RESOLUTION NO. 98-....QB.
Page 3
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g. Section 9.2. of the Pension Plan is amended to read as follows:
9.2. Upon Severance of Employment of a Participant other than by death, the Plan
Administrator shall cause the Participant's vested Accrued Benefit to be distributed to the Participant as soon
as administratively feasible; provided, however, that:
a. Distribution of all but not less than all the vested Accrued Benefit of a Participant
whose Severance of Employment is because of Disability or occurs on or after attainment of Early Retirement
Age or Normal Retirement Age may at the election of the Participant be deferred until required to be distributed
pursuant to Section 9.3., Section 9.5., Section 9.6., or Section 9.7.
b. Distribution of the vested Accrued Benefit of a Participant who:
(1) Has been laid off by the Employer;
(2) Is not entitled under Section 9.2.a. to elect to defer distribution; and
(3) Is eligible for recall under the Employer's personnel policies or has recall
rights under a collective bargaining agreement of which the Employer is a party,
shall be deferred during the period in which the Participant has such recall eligibility or recall rights unless
required to be distributed pursuant to Section 9.3., Section 9.5., Section 9.6., or Section 9.7. or unless during
that period the Participant requests distribution of all but. not less than all the Participant's vested Accrued
Benefit. If the Participant. again becomes an Employee. before the Participant's vested Accrued Benefit is
distributed, the Participant's vested Accrued Benefit shall be distributed only as provided in this Section 9. upon
or after the Participant's later Severance of Employment.
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h.
Section 9.4. of the Pension Plan is amended to read as follows:
9.4.
Upon the first to occur of:
a. Severance of Employment (unless distribution is deferred under Section 9.2.b. or
the Participant or beneficiary has elected pursuant to Section 9.2.a. or Section 9.3. to defer distribution),
b. The end of the deferral period under Section 9.2.b. or the Participant's request for
a distribution as provided in Section 9.2.b.,
c. The end of the deferral elected pursuant to Section 9.2.a. or Section 9.3., or
d. The death of a Participant after Severance of Employment (unless the beneficiary
has elected pursuant to Section 9.3. to defer distribution),
the Plan Administrator shall cause the Participant's vested Accrued Benefit (not including any Accrued Benefit
pursuant to Section 4.5.) to be distributed to the Participant or the Participant's beneficiary, as the case may
be, in the form of a lump sum distribution.
Any Accrued Benefit of the . Participant pursuant to Section 4.5. shall be distrib\Jted to the Participant or the
Participant's beneficiary in the form of a lump sum distribution upon the earlier of (1) the date the Participant
attains age sixty-five (65) or (2) the date of the Participant's death.
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RESOLUTION NO. 98- 08
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1. Sections 12.1. through 12.5. of the Pension Plan are amended to read as follows:
12.1. No assets may be transferred or rolled over to this Plan from any other plan qualified
under IRC Section 401(a).
12.2. Amounts in Participants' accounts described in the left column in Section 12.3.b.
. below shall be held in the Policy until received by the Trustee upon discontinuance of the Policy.
12.3. If the Policy is discontinued, as of the date the Trustee receives funds upon
discontinuance of the Policy the Plan Administrator shall:
a. For purposes of Section 5.4. use that date as a Valuation Date and treat any market
value adjustment received under the Policy as part of the net income or net loss of the Policy accrued or actually
realized or suffered since the last Valuation Date.
b. Reallocate as follows the amounts in Participants' accounts that were held in the
Policy:
The amount, if any, allocated to a Participant's account
described in a row in this column:
Shall be allocated to the Participant's account
described in the corresponding row in this column:
PM Employer Contribution Account
PM Pick-up Account
PM Employee Required Contribution Account
PM Voluntary Contribution Account
Employer Contribution Account
Pick-up Account
Employee Required Contribution Account
Voluntary Contribution Account
12.4. The amounts reallocated as provided in Section 12.3.b. above shall be invested as
directed by Participants only under investment instructions made by Participants after January 20, 1998, and
only as permitted in Section 5.7. Amounts so reallocated and not invested as directed by Participants shall be
invested as directed by the Plan Administrator as provided in the Trust.
12.5. Any reference in the Plan to accounts described in Section 12.3. means the accounts
described in the left column in Section 12.3.b. above.
Section 2. The City Manager is directed to prepare and execute a restatement of the
Pension Plan incorporating the amendments to the Pension Plan made in this Resolution and also
incorporating the effective dates of the amendments.
Section 3. The Retirement Plan as restated in the form attached hereto is adopted.
Section 4. The Retirement Plan Trust attached hereto is adopted.
RESOLUTION NO. 98-...o.a.
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Section 5. Gino Grimaldi is authorized to discontinue Group Retirement Policies G-9214
and G-9214.02 issued by Pacific Life Insurance Company. Any such discontinuance previously
made is ratified.
ADOPTED by the Common Council and approved by the Mayor of the City of
Springfield this 20th day of January, 1998.
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ADOPTED by a vote of _ for and _ against. .
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Mayor
ATTEST:
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CIty ecorder
REVIEWED & APPROVeO
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DATE: \~ \ \0.:; \ '6
OFFiCe OF CITY ATrORNEY
RESOLUTION NO. 98-..illL
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