HomeMy WebLinkAboutResolution 10-40 06/21/2010
RESOLUTION NO. 10 - 40
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD
AMENDING THE CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN.
WHEREAS, the City of Springfield adopted, in Resolution No. 07-30, the 2007 Restatement of
the City of Springfield, Oregon Retirement Plan (the Retirement Plan); and
WHEREAS, the Retirement Plan provides a "tax remedy" benefit to certain Public Safety
Employees, as required by ORS 237.635 and 237.637, 1991 Oregon Laws chapter 796, and 1995
Oregon Laws chapter 569, which generally require the Retirement Plan to provide certain Public
Safety Employees with a tax remedy benefit that is equal to or the actuarial equivalent of the tax
remedy benefit provided to members of the Oregon Public Employees Retirement System; and
WHEREAS, 2009 Oregon Laws chapter 868, section 1, changed the tax remedy benefit
provided to members of the Oregon Public Employees Retirement System, by amending the
benefit formula in ORS 238.380(4)(a) to replace the maximum Oregon personal income tax rate
with a tax rate of 9%; and
WHEREAS, the Council desires to amend the benefit formula for the Retirement Plan's tax
remedy benefit, by replacing the maximum Oregon personal income tax with a tax rate of 9%,
which would be accomplished by deleting Section 6.5. of the Retirement Plan, which states:
6.5 ADJUSTMENT FOR CHANGES IN TAX RATE. The decimal.91 in
the formula in Section 6.3.b. shall automatically be adjusted as provided in this Section 6.5. to
reflect changes in the maximum Oregon personal income tax rate imposed upon individuals who
are full-year residents of Oregon. An increase in such rate by x percentage points shall cause such
decimal to be reduced by x 100ths, and a reduction in such rate by x percentage points shall cause
such decimal to be increased by x 100ths. For example, following are the decimals that correspond
to particular rates:
If the rate is:
The decimal is:
7 percent
8 percent
9 percent
10 percent
11 percent
.93
.92
.91
.90
.89
Any such change in the decimal shall be effective only for distributions made on or after the
effective date of the change in such rate. No amount distributed to a Participant or beneficiary
before the change is implemented may be recovered from any person or offset against any
undistributed benefit of any person to account for any such change.; and
WHEREAS, in the Retirement Plan the Council has reserved the right to amend the Retirement
Plan to change the Retirement Plan's tax remedy benefit as the Council determines appropriate to
respond to any law modifying any requirement ofORS 237.635 and 237.637, 1991 Oregon Laws
chapter 796, and 1995 Oregon Laws chapter 569;
NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY
OF SPRINGFIELD, that, effective for benefit payments made after June 30, 2009, the Council
amends the 2007 Restatement of the City of Springfield, Oregon Retirement Plan by deleting
Section 6.5 of the 2007 Restatement, as the 2007 Restatement has been amended to date, and
renumbering Sections 6.6, 6.7, and 6.8 of the 2007 Restatement, as the 2007 Restatement has
been amended to date, as Sections 6.5, 6.6, and 6.7, respectively; and
BE IT FURTHER RESOLVED, that this Resolution shall take effect upon adoption by the
Council and approval by the Mayor.
Adopted by the Common Council of the City of Springfield, Oregon by a vote of ~ for and
~ against, this 21st day of June ,2010. (1 absent)
ATTEST:
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City Recor r
REVIEWED AND APPROVED
AS TO FORM:
F~ IJIA~
May ~, 2010
OFFICE OF CITY ATTORNEY
CITY OF SPRINGFIELD
REVIEWED & APPROVED
A TO FORM
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DATE: \::U 4<<:)\0
OFFICE OF CITY ATTORNEY
RESOLUTION NO. 10-40