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HomeMy WebLinkAboutbocc.con.214.2011 CONTRACT # / AMENDMENT NUMBER TWO TO THE PITKIN COUNTY PUBLIC EMPLOYEES' RETIREMENT PLAN THIS AMENDMENT is made this 7f � day of `d 2011, by Pitkin County (subsequently called "County "). RECITALS A. The County entered into and executed the Pitkin County Public Employees' Retirement Plan (subsequently called "Plan "), effective January 1, 1983. B. The County restated the Plan, effective January 1, 2008. C. Section 10.4 of the Plan provides in part as follows: "At any time the County may amend this Plan and Trust by action of the Board with the approval of the County Board of Commissioners...." D. The County now desires to amend the Plan to reflect changes in the law due to the Pension Protection Act of 2006, the Heroes Earnings Assistance and Relief Tax Act of 2008, and the Worker, Retiree, and Employer Recovery Act of 2008. NOW THEREFORE, BE IT RESOLVED, the County does amend this Plan and Trust by the adoption of the following amendments. AMENDMENT 1. Effective January 1, 2007, Article III of the Plan hereby is amended by the addition of a new section 3.3 to read as follows: 3.3 MILITARY SERVICE: Notwithstanding any provision of this Plan to the contrary, the following provisions shall apply: [a] Contributions, benefits and service credit with respect to Qualified Military Service will be provided in accordance with and to the extent required by Code Section 414(u); [b] Effective for years beginning on or after January 1, 2009, [A] an individual receiving a differential wage payment, as defined in Code Section 3401(h)(2), shall be treated as an employee of the employer making the payment; [B] the differential wage payment shall be treated as compensation for purposes of Code Section 415 and any other Code Section that references the definition of Compensation under Code Section 415; and [C] the Plan shall not be treated as failing to meet the requirements of any provision described in Code Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment. This paragraph [b] applies only if all employees of the Employer performing service in the uniformed services described in Code Section 3401(h)(2)(A) are entitled to receive differential wage payments on reasonably equivalent [FAX! 102953.1 terms and, if eligible to participate in the Plan, to make contributions based on the differential wage payments on reasonably equivalent terms; and [c] If a Participant dies while performing Qualified Military Service, the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of Qualified Military Service) provided under the Plan as if the Participant had resumed employment with the County and then died. 2. Effective January 1, 2009, Section 7.2[bJ[2J of the Plan is amended to read in its entirety as follows: [2] Definitions: [A] 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 [i] 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; [ii] any distribution to the extent such distribution is required under Code Section 401(a)(9); [iii] the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); [iv] any hardship distribution; and [v] any other distribution that is reasonably expected to total less than $200 during a year. A portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after -tax employee contributions which are not includible in gross income. However, such portion may be transferred 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 Sections 401(a) or 403(a) of the Code, or to an annuity contract described in Section 403(b) of the Code and such plan or contract provides for separate accounting for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. An eligible rollover distribution shall include any distribution to a designated beneficiary which would be treated as an eligible rollover distribution by reason of Section 402(c)(11) of the Code, or Sections 403(a)(4)(B), 403(b)(8)(B), or 457(e)(16)(B) of the Code, if the requirements of Section 402(c)(11) of the Code were satisfied. [B] Eligible Retirement Plan: An eligible retirement plan is an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan, 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, an annuity contract described in Section 403(b) of the Code, or a qualified plan described in Section 401(a) of the Code, or, effective for distributions made after December 31, 2007, a Roth IRA described in Section 408A(b) of the Code, that accepts the distributee's eligible rollover distribution. 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 relations order, or to a non - spouse Beneficiary (but for a non - spouse Beneficiary, eligible 2 /TAXI 102953.1 retirement plan shall be limited to individual retirement accounts and individual retirement annuities). If any portion of an eligible rollover distribution is attributable to payments or distributions from a designated Roth account, an eligible retirement plan with respect to such portion shall include only another designated Roth account of the individual from whose account the payments or distributions were made, or a Roth IRA of such individual. [C] Distributee: A distributee includes an Employee or former Employee. In addition, the Employee's or former Employee's surviving spouse and the Employee's or former Employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, and the Employee's non - spouse Beneficiary, are distributees with regard to the interest of such person. [i] Non - Spouse Beneficiary Rollover: Effective for distributions after December 31, 2009, a designated Beneficiary who is not the Participant's surviving spouse is a Distributee with respect to the interest of the designated Beneficiary if the distribution that is otherwise an eligible rollover distribution is made by a direct trustee -to- trustee transfer ( "direct rollover ") to an individual retirement account described in Section 408(a) of the Code or an individual retirement annuity described in Section 408(b) of the Code that is established for the purposes of receiving the distribution on behalf of the designated Beneficiary. Distributions to a non - spouse Beneficiary made prior to January 1, 2010, are not subject to the direct rollover requirements of Section 401(a)(31) of the Code, the notice requirements of Section 402(0 of the Code, or the mandatory withholding requirements of Section 3405(c) of the Code. Distributions from the Plan to a non - spouse Beneficiary are not eligible for a sixty -day rollover. [ii] Trust Beneficiary: If the Participant's named Beneficiary is a trust that satisfies the requirements to be a designated Beneficiary under Section 401(a)(9)(E) of the Code, the Plan may make a direct rollover to an individual retirement account on behalf of the trust. [D] Direct Rollover: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. 3. Effective January 1, 2009, Section 7.3 of the Plan is amended by the addition of a new subsection /h1 to read as follows: [h] No Required Minimum Distributions for 2009. Notwithstanding the preceding provisions of this Section, a Participant or Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of Section 401(a)(9)(H) of the Code, and who would have satisfied that requirement by receiving distributions, will not receive those distributions for 2009 unless the Participant or Beneficiary elects to receive such distributions pursuant to the terms of the Plan. In addition, solely for purposes of applying the direct rollover provisions of the Plan, any such elected distributions in 2009 will be treated as eligible rollover distributions. A direct rollover will be offered only for distributions that would be eligible rollover distributions without regard to Section 401(a)(9)(H) of the Code. 4. Any inconsistent provision of the Plan shall be read consistent with this amendment. 3 /TAXI 102953.1 S. Except as amended above, the County hereby affirms and readopts each and every other provision of the Plan. IN WITNESS WHEREOF, the Pitkin County Employees' Retirement Board has executed this amendment as of the date first above written. PITKIN COUNTY PUBLIC EMPLOYEES' RETIREMENT BOARD By: '614 Date: /. PITKIN COUNTY BOARD OF COUNTY COMMISSIONERS By: 4 - 1 4 /TAX 1102953.1