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HomeMy WebLinkAbout20083281.tiff RESOLUTION RE: APPROVE IRS EMPLOYER"PICK UP" PROVISION FOR CONTRIBUTIONS TO WELD COUNTY RETIREMENT PLAN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS,the Board of County Commissioners has previously established a"pick-up"with respect to contributions and each increase in contributions, and the Weld County Retirement Plan and related trust (the "Plan") has been operated accordingly, and WHEREAS, contributions "picked up" by an employing unit are treated as employer contributions and excluded from gross income of the employee until distribution to the employee, and WHEREAS, in accordance with the provisions of Revenue Ruling 2006-43, the Board of County Commissioners, County of Weld, State of Colorado, must take formal action prior to January 1, 2009,to ensure that designated contributions of employees of Weld County to the Plan, which are intended to be "picked up" as employer contributions pursuant to Section 414(h)(2) of the Internal Revenue Code of 1986, as amended ("Code"), meet the requirements of Code Section 414(h)(2), and WHEREAS, the Board of County Commissioners now wishes to take formal action to effectuate the "pick-up" in accordance with Revenue Ruling 2006-43. NOW THEREFORE, BE IT RESOLVED, that the Board of County Commissioners has previously taken contemporaneous action evidencing an intent to establish a"pick-up"with respect to contributions and each increase in contributions, and the Weld County Retirement Plan and related trust (the "Plan") has been operated accordingly. BE IT FURTHER RESOLVED, by the Board that, in accordance with the provisions of Revenue Ruling 2006-43,the Board of County Commissioners, County of Weld, State of Colorado, is hereby taking formal action to ensure that designated contributions of employees of Weld County to the Plan, which are intended to be "picked up" as employer contributions pursuant to Section 414(h)(2) of the Internal Revenue Code of 1986, as amended ("Code"), meet the requirements of Code Section 414(h)(2). BE IT FURTHER RESOLVED, that, effective August 28, 2006, all future contributions of Weld County employees to the Plan, although designated as employee contributions, are being paid by Weld County in lieu of contributions by the employees. BE IT FURTHER RESOLVED, that employees of Weld County who are members of the Plan shall not be permitted to opt out of the"pick-up,"or to receive the contributed amounts directly instead of having them paid by Weld County to the Plan. 2008-3281 PE0016 CO .D/Z,nNo , i D/-O9 -07 RE: IRS EMPLOYER "PICK UP" PROVISION FOR CONTRIBUTIONS TO WELD COUNTY RETIREMENT PLAN PAGE 2 BE IT FURTHER RESOLVED, that, to the extent, if any, that the foregoing resolutions do not meet the requirements of Code Section 414(h)(2) or Revenue Ruling 2006-43, or that final income tax regulations or other guidance from the Internal Revenue Service or the Department of the Treasury provide for additional requirements in order to fulfill the requirements of Code Section 414(h)(2)or Revenue Ruling 2006-43,the foregoing resolutions shall be deemed modified to the extent necessary to meet such requirements. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 15th day of December, A.D., 2008. _ BOARD OF COUNTY COMMISSIONERS Elle WELD COUNTY, COLORADO ATTEST: ibinz<r44 - `!, �/ ,4 1861 ( • iWilliam H. Jerke, Chair Weld County Clerk to th: :o. EXCUSED t , Robert D. Masden Pro-Tern BY:` /U De• y Cler o the Boar. J Willis F. Garcia APP ► AS 1� %' I'. C>> 1 David E. Long 4(/ .unty Attorney ouglas ademache Date of signature: I?I2,0 'D�6 2008-3281 PE0016 Don Warden From: Bruno, Marlise [Marlise.Bruno@mercer.com] Sent: Tuesday, December 09, 2008 2:42 PM To: Don Warden Cc: Racine, Nick ' / • Subject: Weld County Resolution j • • Attachments: Resolution 2008 pick up.DOC Resolution 2008 pick up.DOC(4... Don, attached is the Resolution for pick-up contributions that we discussed this morning. I didn't specifically mention this to you, but this should be executed prior to January 1, 2009 . Also, we'd like a signed copy for our records if possible. Thanks so much for your help! Marlise «Resolution 2008 pick up.DOC» Marlise Bruno, Senior Associate Mercer 11225 17th Street, Denver, CO, USA +1 303 376 5934 I Fax +1 303 376 0087 I marlise.bruno@mercer.com Assistant: Michelle Behrend I +1 303 376 5971 I michelle.behrend@mercer.com www.mercer.com I Mercer (US) Inc. MSB:NR The information contained in this document (including any attachments) is not intended by Mercer to be used, and it cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code that may be imposed on the taxpayer. Mercer - International benefits consultant of the year - Global Pensions Awards 2008 This e-mail and any attachments may be confidential or legally privileged. 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