HomeMy WebLinkAbout982263.tiff RESOLUTION
RE: APPROVE ADOPTION OF WELD COUNTY QUALIFIED GOVERNMENTAL EXCESS
BENEFIT ARRANGEMENT UNDER IRS SECTION 415(M) AND AUTHORIZE CHAIR
TO SIGN
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 Weld County Retirement Plan (the "Retirement Plan") is a tax qualified
retirement plan that must meet the requirements of Code Section 415, and
WHEREAS, in certain cases, Code Section 415(b) prevents the Retirement Plan from
paying fully earned benefits to members of the Retirement Plan, and
WHEREAS, the Small Business Job Protection Act of 1996 introduced new Code
Section 415(m) which permits a governmental employer to adopt a Qualified Governmental
Excess Benefit Arrangement ("QGEBA") solely for the purpose of providing members in a
government plan that part of the benefit otherwise payable under the government plan but for
the limits of Code Section 415(b), and
WHEREAS, Weld County wishes to adopt a program that meets the provisions of the
Code and thereby restores benefits which cannot be paid from the Retirement Plan due to the
benefit limitations under Code Section 415(b),
WHEREAS, the County wishes to adopt a QGEBA for its eligible members.
NOW, THEREFORE, BE IT RESOLVED that the following provisions are adopted
effective January 1, 1999, for the purpose of creating an QGEBA for Weld County Retirement
Plan eligible members.
BE IT FURTHER RESOLVED by the Board of County Commissioners of Weld County,
Colorado, that the Weld County Qualified Governmental Excess Benefit Arrangement is hereby
created and adopted effective January 1, 1999, for Weld County Retirement Plan members who
qualify and commence benefits under the Weld County Retirement Plan on or after January 1,
1999.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said arrangement.
_ 982263
CC : Pr PE0001
ADOPTION OF WELD COUNTY QUALIFIED GOVERNMENTAL EXCESS BENEFIT
ARRANGEMENT
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 23rd day of November, A.D., 1998.
BOARD OF COUNTY COMMISSIONERS
, WE>21
COUNTY, COLORADO
p
ATr �tiJ, �:'/�
cj( : i d✓�, GayConstance L. Harbert, Chair, /fIVcSunty,tig he Board P
,i. "P /L)A1W. ebs er, ro-Tem
,RI?e.d a ,iss f. _ �G-catr
to the Board
orge E. axter
APPROVED ORM:
Da K. Hall /y
y Att me �� Laic_ .1/ Li
Barbara J. Kirkmeyer
982263
PE0001
WELD COUNTY QUALIFIED GOVERNMENTAL
EXCESS BENEFIT ARRANGEMENT
WHEREAS, the Weld County Retirement Plan (the "Retirement Plan") is a tax
qualified retirement plan that must meet the requirements of Code Section 415;
WHEREAS, in certain cases, Code Section 415(6) prevents the Retirement Plan
from paying fully earned benefits to members of the Retirement Plan;
WHEREAS, the Small Business Job Protection Act of 1996 introduced new Code
Section 415(m) which permits a governmental employer to adopt a Qualified
Governmental Excess Benefit Arrangement ("QGEBA") solely for the purpose of
providing members in a government plan that part of the benefit otherwise
payable under the government plan but for the limits of Code Section 415(b);
WHEREAS, Weld County (the "County") wishes to adopt a program that meets the
provisions of the Code and thereby restores benefits which cannot be paid from
the Retirement Plan due to the benefit limitations under Code Section 415(6);
WHEREAS, the County wishes to adopt a QGEBA for its eligible Members.
NOW, THEREFORE, the following provisions are adopted effective January 1,
1999, for the purpose of creating an QGEBA for members who commence benefits
under the Retirement Plan on or after January 1, 1999.
ARTICLE I
DEFINITIONS
1.1 Beneficiary means the person or persons so designated under the terms of
the Retirement Plan.
1.2 Code means the Internal Revenue Code of 1986 and the regulations
thereunder, as amended.
1.3 Disability Retirement Benefit means the benefit a Member is entitled to
under Sections 6.4 and 7.3 of the Retirement Plan.
1.4 Early Retirement Date means the date a Member commences benefits prior
to his or her Normal Retirement Date under Section 7.2 or 10.3 of the Retirement
Plan.
1.5 Eligible Employee means any member (including a retired member) in the
Retirement Plan who commences benefits thereunder on or after January 1, 1999,
and whose accrued benefit under the Retirement Plan is limited by the terms of
Code Section 415(6).
1.6 Normal Retirement Date means the Normal Retirement Date as defined in
Section 6.1 of the Retirement Plan.
��0': e0 3
1.7 Member means an Eligible Employee who meets the requirements of
Section 2.1 and participates in this Plan.
1.8 Retirement Benefit means a monthly retirement amount payable under the
terms of this Plan.
1.9 Retirement Plan means the Weld County Retirement Plan or successor
retirement plan that is intended to be qualified under Code Section 401(a).
1.10 Plan or QGEBA means the Weld County Qualified Governmental Excess
Benefit Arrangement.
1.11 Plan Year means the twelve month period beginning on January 1 and
ending on December 31 of each year during which the Plan is in effect.
ARTICLE II
ELIGIBILITY AND PARTICIPATION
2.1 Requirements. An Eligible Employee shall become a Member in this Plan
when it is determined, at the time of benefit commencement under the Retirement
Plan, that the accrued benefit to be paid to the Eligible Employee under the
Retirement Plan is limited by the provisions of Code Section 415(b). An employee
who is not entitled to a benefit under the Retirement Plan is not eligible to become
a Member under this Plan. If the only benefit paid to an employee under the
Retirement Plan is his accumulated contributions plus interest, the employee is not
eligible to become a Member under this Plan.
ARTICLE III
BENEFITS
3.1 Normal or Delayed Retirement Benefit. A Member who commences
benefits under the Retirement Plan on or after his or her Normal Retirement Date
shall be entitled to receive a Retirement Benefit equal to (a) the monthly
retirement benefit which would have been paid under the provisions of the
Retirement Plan in the form of payment elected by the Member under the
Retirement Plan, if the Retirement Plan were administered without regard to the
limitations contained in Code Section 415(b), less (b) the amount of the monthly
retirement benefit which he or she is entitled to receive under the Retirement Plan
in the form of payment elected by the Member under the Retirement Plan.
3.2 Early Retirement Benefit. A Member who commences benefits under the
Retirement Plan at his or her Early Retirement Date shall be entitled to receive a
Retirement Benefit equal to (a) the monthly early retirement benefit which would
have been paid under the provisions of the Retirement Plan in the form of
payment elected by the Member under the Retirement Plan, if the Retirement Plan
were administered without regard to the limitations contained in Code Section
415(b), less (b) the amount of monthly early retirement benefit which he or she is
entitled to receive under the Retirement Plan in the form of payment elected by
the Member under the Retirement Plan. If early retirement benefits commence
prior to the Member's Normal Retirement Date, the benefits payable under the
Plan and the Retirement Plan shall be reduced for such early commencement
using the factors and process described under the terms of Section 7.2 of the
Retirement Plan.
3.3 Disability Retirement Benefit. A Member who commences a Disability
Retirement Benefit under the Retirement Plan shall be entitled to receive a monthly
benefit under this Plan equal to (a) the Disability Retirement Benefit which would
have been paid under the provisions of the Retirement Plan, if the Retirement Plan
were administered without regard to the limitations contained in Code Section
415(b), less (b) the Disability Retirement Benefit which he or she is entitled to
receive under the Retirement Plan.
3.4 Death Benefit. A spouse or Beneficiary who is eligible to receive a death
benefit under the Retirement Plan shall be entitled to receive a benefit under this
Plan equal to (a) the death benefit which would have been paid under the
provisions of the Retirement Plan, if the Retirement Plan were administered
without regard to the limitations contained in Code Section 415(b), less (b) the
amount of death benefits which he or she is entitled to receive under the
Retirement Plan.
3.5 Form of Payment. The form of payment under this Plan shall he the same
form as elected under the Retirement Plan.
3.6 Commencement Date of Payments. Benefit payments shall commence
under this Plan as of the same date that they commence under the Retirement
Plan.
3.7 Limitations on Benefits. In no event shall a Member, spouse or Beneficiary
he entitled to receive total benefits from the Plan and the Retirement Plan in
excess of the benefit he or she would have received from the Retirement Plan if
the limitations under Code Section 4150 ) were not applicable to the Retirement
Plan.
3.8 Payment of Benefits. The County contributions to the Retirement Plan for
any Plan Year in which benefits are payable under this Plan shall be reduced by
an amount determined by the County, on advice of its actuary, as necessary to
meet the requirement for benefits under this Plan. The payment of benefits under
this Plan shall made on a pay-as-you-go basis. Benefit payments under this Plan
may be made to a Member, spouse or Beneficiary by the County or its designee or
disbursement agent (to the extent not paid from a trust (if any) established under
Section 4.4).
3.9 Employee's Rights. Except as otherwise specifically provided or as
specifically excluded under the terms of this Plan, an Eligible Employee's rights
under this Plan shall be the same as his rights under the Retirement Plan in
connection with retirement, disability or death benefits. The County assets used to
provide benefits under this Plan may not be commingled with the monies of the
Retirement Plan or any other qualified plans, nor may this Plan receive any
transfer of assets from the Weld County Retirement Pension Trust. No Eligible
Employee, spouse or Beneficiary shall have any title to or beneficial ownership in
any assets which the County may earmark to pay benefits hereunder.
3.10 Erroneous Payments. In the event that a Member, spouse or Beneficiary
receives benefit payments under this Plan in excess of the amount, if any, to
which such Member is entitled, by reason of calculation error or otherwise, the
County, in its sole and absolute discretion, may adjust future benefit payments to
such person to the extent necessary to recoup the amount which such person
received which was in excess of the amount to which such person was entitled
under the terms of this Plan. If the County determines, in its sole and absolute
discretion, that it is not feasible to adjust future benefit payments to such person,
the County may require such person to repay to the Plan the amount which is in
excess of the amount to which such person is entitled under the terms of this Plan.
All amounts received by a person under this Plan shall be deemed to be paid
subject to this condition. The determinations of the County made pursuant to this
Section 3.10 shall be final, conclusive and binding on all parties, subject to any
applicable claims procedure, and shall not be overturned unless such
determinations are arbitrary and capricious.
3.11 Taxes. The County shall have discretionary authority to withhold taxes
(including any applicable employment taxes) due with respect to any benefit
payments made under this Plan. In the event that monthly benefit payments
under this Plan are insufficient to satisfy the current tax liability, the County shall
have the discretionary authority to make other reasonable arrangements for
discharging the tax liability, including without limitation, withholding the requisite
amounts from future benefit payments.
ARTICLE IV
ADMINISTRATION
4.1 Administration. The Plan shall he administered by the County which shall
administer the Plan in a manner consistent with the administration of the
Retirement Plan except that this Plan is intended as a qualified governmental
excess benefit arrangement under Code Section 415(m), not a plan qualified under
Code Section 401(a).
The County shall have sole and absolute discretionary power and authority to
interpret, construe and administer this Plan. The County may appoint certain of its
officers and employees to enable it to exercise this administrative power and
authority, but no such officer or employee shall be deemed to be an individual
fiduciary with respect to the Plan as a result of such appointment. The County's
interpretations and actions, including the timing, form, amount or recipient of any
payment to be made hereunder, shall be binding and conclusive on all persons for
all purposes and shall not be overturned unless such interpretations and actions
are arbitrary and capricious. The County shall not be liable to any person for any
action taken or omitted in connection with the interpretation and administration of
the Plan.
The Plan shall be construed and administered in a manner that satisfies the
requirements of Code Section 415(m).
4.2 Amendment or Discontinuance.
(a) The County reserves the sole right and absolute discretionary
authority to amend this Plan at any time and in any manner; provided, however,
that no such amendment shall result in a reduction in the amount of benefit
payable to any Member, spouse or Beneficiary whose benefit payments have
commenced prior to the date on which such amendment is adopted.
(b) The County reserves the sole right and absolute discretionary
authority to terminate this Plan at any time and in any manner; provided, however,
that no such action shall result in a reduction of amount of benefit payable to any
Member, spouse or Beneficiary whose benefit payments have commenced prior to
the plan termination date. In the event that the County terminates this Plan, the
County, in its discretion, shall select one or more of the following methods to
discharge its obligations to any Member, spouse or Beneficiary whose benefits
commenced prior to the date of plan termination: (1) continuing to make benefit
payments to such Member, spouse or Beneficiary on a pay-as-you-go basis, (2)
purchasing an indexed annuity for such Member, spouse or Beneficiary, or (3)
providing a lump sum benefit equal to the present value of the amount due such
Member, spouse or Beneficiary, where such present value is based on reasonable
assumptions as determined by an actuary selected by the County.
(c) Nothwithstanding (a) and (b) above, the County shall have the right
to amend or terminate this Plan at any time and in any manner (even if the
Member, spouse or Beneficiary has already commenced benefit payments) if such
action is required to preserve the tax-qualified status of the Retirement Plan or to
comply with federal or state laws.
4.3 Restrictions on Assignment The interest of an Eligible Employee, a spouse
or Beneficiary may not he sold, transferred, assigned, or encumbered in any
manner, either voluntarily or involuntarily, and any attempt to anticipate, alienate,
sell, transfer, assign, pledge, encumber or charge the same shall he null and void;
neither shall the benefits be liable for or subject to the debts, contracts, liabilities,
engagements, or torts of any person to whom such benefits or funds are payable,
nor shall they be subject to garnishment, attachment, or other legal or equitable
process nor shall they be an asset in bankruptcy, except that no amount shall be
payable under the Plan until and unless any and all amounts representing debts or
other obligations owed to the County by the Eligible Employee with respect to
whom such amount would otherwise be payable has been fully paid and satisfied.
4.4 Unfunded Plan. Nothing in this Plan shall be interpreted or construed to
require the County (a) to place assets in trust or in escrow or in any other form of
segregated account for the benefit of any Member, spouse or Beneficiary, or (b) in
any other manner to fund any obligation to any Member, spouse or Beneficiary
hereunder. The County may, in its sole discretion, create a trust through which
benefit payments are made to the Member, spouse or Beneficiary. The creation of
such trust does not in any way create an obligation on the part of the County to
fund the benefits to be paid from the trust or to continue benefit payments
through the trust. Any assets which may be accumulated by the County in order
to meet its obligations under this Plan shall for all purposes continue to be part of
the general assets of the County, subject to the claims of the general creditors of
the County, unless the assets are held pursuant to a trust agreement that expressly
provides otherwise.
Notwithstanding the foregoing, nothing in this Plan shall limit the County's right, in
its sole discretion, to discharge its obligations under this Plan through the purchase
of an annuity for the benefit of a Member, spouse or Beneficiary (regardless of
whether such person is already receiving benefits under the plan).
4.5 Binding Agreement. The Plan is binding upon and inures to the benefit of
the County, its successors and assigns and the Eligible Employee and his or her
spouse, Beneficiary, heirs, executors, administrators and legal representatives.
This Plan document constitutes the entire agreement of the parties.
4.6 Governing Laws. The Plan is construed in accordance with and governed
by the laws of the State of Colorado.
4.7 Employment. Nothing in this Plan shall be construed as a contract of
employment between the County and any Eligible Employee, or as a right of any
Eligible Employee to be continued in employment with the County, or as a
limitation on the right of the County to discharge any of is employees, with or
without cause.
EXECUTED this 23rd day of November, A. D., 1998.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
Const nce L. H rbert, Chair
°N Id Ct3,umty,O he Board ,) ��
W. . ebste , Pro- em,
J .:C. ,- j�
to the Board �� �``�-/
eorge E Baxter
APPROVED ABTCFORM:
Dale K. Hall
-----IC unty Attorney _ Liz
arbara J. Kirkmeyer
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