HomeMy WebLinkAboutbocc.con.162.2003APPROVED BY BOCC
CONTRACT
AMENDMENT NUMBER TWO TO TI-rE
PITK1N COUNTY PUBLIC EMPLOYEES' RETIREMENT PLAN
THIS AMENDMENT is made this /7-~4 day of r<5~~ 2003,
by Pitkin County (subsequently called "County").
RECITALS
A. The County entered into and
Employees' Retirement Plan, effective January I, 1983.
executed the Pitkin County Public
B. The County restated the Plan, effective January 1,2001.
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 and Trust.
AMENDMENT
NOW THEREFORE, the County does amend this Plan and Trust by the adoption
of the following model amendments issued by the Internal Revenue Service:
1. The Plan is amended by the addition of the following:
MODEL AMENDMENT UNDER CODE SECTION 401(A)(9)
Section 1. General Rules
I. 1. Effective Date. The provisions of this Model Amendment will apply for
purposes of determining required minimum distributions for calendar years beginning with the
2003 calendar year.
1.2. Precedence. The requirements of this Model Amendment will take
precedence over any inconsistent provisions of the Plan. However, nothing in this Model
Amendment will be construed to offer or provide any optional form of distribution not available
under the terms of the Plan.
1.3. Requirements of Treasury_ Regulations Incorporated. All distributions
required under this Model Amendment will be determined and made in accordance with the
Treasury regulations under section 401 (a)(9) of the Internal Revenue Code.
1.4. TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Model Amendment, distributions may be made under a designation made
before January I, 1984, in accordance with section 242(b)(2) of the Tax Equity and Fiscal
Responsibility Act (TEFRA) and the provisions of the Plan that relate to section 242(b)(2) of
TEFRA.
Section 2. Time and Manner of Distribution.
2.1. Required Beginning Date. The Participant's entire interest will be
distributed, or begin to be distributed, to the Participant no later than the Participant's required
beginning date.
2.2. Death of Participant Before Distributions Begin. If the Participant dies
before distributions begin, the Participant's entire interest will be distributed, or begin to be
distributed, no later than as follows:
(a) If the Participant's surviving spouse is the Participant's sole
designated Beneficiary, then, except as provided below, distributions to the surviving spouse will
begin by December 31 of the calendar year immediately following the calendar year in which the
Participant died, or by December 31 of the calendar year in which the Participant would have
attained age 70-1/2, if later.
(b) If the Participant's surviving spouse is not the Participant's sole
designated Beneficiary, then, except as provided below under "Elections", distributions to the
designated Beneficiary will begin by December 31 of the calendar year immediately following
the calendar year in which the Participant died.
(c) If there is no designated Beneficiary as of September 30 of the year
following the year of the Participant's death, the Participant's entire interest will be distributed by
December 31 of the calendar year containing the fifth anniversary of the Participant's death.
(d) If the Participant's surviving spouse is the Participant's sole
designated Beneficiary and the surviving spouse dies after the Participant but before distributions
to the surviving spouse begin, this section 2.2, other than section 2.2(a), will apply as if the
surviving spouse were the Participant.
For purposes of this section 2.2 and section 4 of this Model Amendment, unless section 2.2(d)
applies, distributions are considered to begin on the Participant's required beginning date. If
section 2.2(d) applies, distributions are considered to begin on the date distributions are required
to begin to the surviving spouse under section 2.2(a).
2.3 Forms of Distribution. Unless the Participant's interest is distributed in the
form of a single sum on or before the required beginning date, as of the first distribution calendar
year distributions will be made in accordance w/th sections 3 and 4 of this Model Amendment.
Section 3. Required Minimum Distributions During Participant's Lifetime.
3.1. Amount of Required Minimum Distribution For Each Distribution
Calendar Year. During the Participant's lifetime, the minimum amount that will be distributed
for each distribution calendar year is the lesser off
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(a) the quotient obtained by dividing the Participant's account balance
by the distribution period in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the
Treasury regulations, using the Participant's age as of the Participant's birthday in the distribution
calendar year; or
(b) if the Participant's sole designated Beneficiary for the distribution
calendar year is the Participant's spouse, the quotient obtained by dividing the Participant's
account balance by the number in the Joint and Last Survivor Table set forth in section
1.401(a)(9)-9 of the Treasury regulations, using the Participant's and spouse's attained ages as of
the Participant's and spouse's birthdays in the distribution calendar year.
3.2. Lifetime Required Minimum Distributions Continue Through Year of
Participant's Death. Required minimum distributions will be determined under this section 3
beginning with the first distribution calendar year and up to and including the distribution
calendar year that includes the Participant's date of death.
Section 4. Required Minimum Distributions After Participant's Death.
4. I. Death On or After Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary_. If the Participant
dies on or after the date distributions begin and there is a designated Beneficiary, the minimum
amount that will be distributed for each distribution calendar year after the year of the
Participant's death is the quotient obtained by dividing the Participant's account balance by the
longer of the remaining life expectancy of the Participant or the remaining life expectancy of the
Participant's designated Beneficiary, determined as follows:
(1) The Participant's remaining life expectancy is calculated
using the age of the Participant in the year of death, reduced by one for each subsequent year.
(2) If the Participant's surviving spouse is the Participant's sole
designated Beneficiary, the remaining life expectancy of the surviving spouse is calculated for
each distribution calendar year after the year of the Participant's death using the surviving
spouse's age as of the spouse's birthday in that year. For distribution calendar years after the year
of the surviving spouse's death, the remaining life expectancy of the surviving spouse is
calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year
of the spouse's death, reduced by one for each subsequent calendar year.
(3) If the Participant's surviving spouse is not the Participant's
sole designated Beneficiary, the designated Beneficiary's remaining life expectancy is calculated
using the age of the Beneficiary in the year following the year of the Participant's death, reduced
by one for each subsequent year.
(b) No Designated Beneficiary. If the Participant dies on or after the
date distributions begin and there is no designated Beneficiary as of September 30 of the year
after the year of the Participant's death, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant's death is the quotient obtained by
dividing the Participant's account balance by the Participant's remaining life expectancy
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calculated using the age of the Participant in the year of death, reduced by one for each
subsequent year.
4.2. Death Before Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary. Except as
provided below under "Elections," if the Participant dies before the date distributions begin and
there is a designated Beneficiary, the minimum mount that will be distributed for each
distribution calendar year after the year of the Participant's death is the quotient obtained by
dividing the Participant's account balance by the remaining life expectancy of the Participant's
designated Beneficiary, determined as provided in section 4.1 of this Model Amendment.
(b) No Designated Beneficiary.. If the Participant dies before the date
distributions begin and there is no designated Beneficiary as of September 30 of the year
following the year of the Participant's death, distribution of the Participant's entire interest will be
completed by December 31 of the calendar year containing the fifth anniversary of the
Participant's death.
(c) Death of Surviving Spouse Before Distributions to Survivin~
Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the
Participant's surviving spouse is the Participant's sole designated Beneficiary, and the surviving
spouse dies before distributions are required to begin to the surviving spouse under section 2.2(a)
of this Model Amendment, this section 4.2 will apply as if the surviving spouse were the
Participant.
Section 5. DeFinitions.
5.1. Designated Beneficiary. The individual who is designated as the
Beneficiary under section 2.2 of the Plan and is the designated Beneficiary under section
401(a)(9) of the Internal Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations.
5.2. Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Participant's death, the first
distribution calendar year is the calendar year immediately preceding the calendar year which
contains the Participant's required beginning date. For distributions beginning after the
Participant's death, the first distribution calendar year is the calendar year in which distributions
are required to begin under section 2.2 of this Model Amendment. The required minimum
distribution for the Participant's first distribution calendar year will be made on or before the
Participant's required beginning date. The required minimum distribution for other distribution
calendar years, including the required minimum distribution for the distribution calendar year in
which the Participant's required beginning date occurs, will be made on or before December 31
of that distribution calendar year.
5.3. Life Expectancy. Life expectancy as computed by use of the Single Life
Table in section 1.401(a)(9)-9 of the Treasury regulations.
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5.4. Participant's Account Balance. The account balance as of the last valuation
date in the calendar year immediately preceding the distribution calendar year (valuation
calendar year) increased by the amount of any contributions made and allocated or forfeitures
allocated to the account balance as of dates in the valuation calendar year after the valuation date
and decreased by distributions made in the valuation calendar year after the valuation date. The
account balance for the valuation calendar year includes any amounts rolled over or transferred
to the Plan either in the valuation calendar year or in the distribution calendar year if distributed
or transferred in the valuation calendar year.
5.5 Required Beginning Date. The date specified in section 7.2[a] of the Plan.
ELECTIONS
(Check and complete any of the remaining Items if you wish to modify the rules in sections 2.2
and 4.2 above.)
Election to Apply 5-Year Rule to Distributions to Designated Beneficiaries.
· If the Participant dies before distributions begin and there is a designated Beneficiary,
distribution to the designated Beneficiary is not required to begin by the date specified in section
2.2 above, but the Participant's entire interest will be distributed to the designated Beneficiary by
December 31 of the calendar year containing the fifth anniversary of the Participant's death. If
the Participant's surviving spouse is the Participant's sole designated Beneficiary and the
surviving spouse dies after the Participant but before distributions to either the Participant or the
surviving spouse begin, this election will apply as if the surviving spouse were the Participant.
This election will apply to:
All distributions.
The following distributions:
Election to Allow Participants or Beneficiaries to Elect 5-Year Rule.
· Participants or beneficiaries may elect on an individual basis whether the 5-year rule or
the life expectancy rule in sections 2.2 and 4.2 above, applies to distributions after the death of a
Participant who has a designated Beneficiary. The election must be made no later than the earlier
of September 30 of the calendar year in which distribution would be required to begin under
section 2.2 above, or by September 30 of the calendar year which contains the fifth anniversary
of the Participant's (or, if applicable, surviving spouse's) death. If neither the Participant nor
Beneficiary makes an election under this paragraph, distributions will be made in accordance
with sections 2.2 and 4.2 above and, if applicable, the elections in Item 2 above.
Election to Allow Designated Beneficiary Receiving Distributions Under 5-Year Rule to Elect
Life Expectancy Distributions.
· A designated Beneficiary who is receiving payments under the 5-year rule may make a
new election to receive payments under the life expectancy rule until December 31, 2003,
provided that all amounts that would have been required to be distributed under the life
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expectancy role for all distribution calendar years before 2004 are distributed by the earlier of
December 31, 2003, or the end of the 5-year period.
2. Any inconsistent provision of the Plan and Trust shall be read consistent
with this amendment.
3. Except as amended above, the County hereby affirms and readopts each
and every other provision of the Plan and Trust.
4. The effective date of this amendment shall be January 1, 1997.
IN WITNESS WHEREOF, the Pitkin County Employee's Retirement Board has
executed this amendment as of the date first above written.
PITKIN COUNTY PUBLIC EMPLOYEES'
RETIREMENT BOARD
PITKIN COUNTY BOARD OF COIJNTY
COIVrMISSIONERS
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