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HomeMy WebLinkAbout20231763.tiffRESOLUTION RE: APPROVE AMENDMENT NOS. 2 AND 3 FOR SECURE ACT COMPLIANCE FOR 401(K) SAVINGS PLAN AND AUTHORIZE CHAIR PRO-TEM 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 Board has been presented with Amendment Nos. 2 and 3 for Secure Act Compliance for the 401(K) Savings Plan for the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Human Resources, with further terms and conditions being as stated in said amendments, and WHEREAS, after review, the Board deems it advisable to approve said amendments, copies of which are attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that Amendment Nos. 2 and 3 for Secure Act Compliance for the 401(K) Savings Plan for the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Human Resources, be, and hereby are, approved. BE IT FURTHER RESOLVED by the Board that the Chair Pro-Tem be, and hereby is, authorized to sign said amendments. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 21st day of June, A.D., 2023. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: .W.devo 4,-14,;(1 Weld County Clerk to the Board Count Attorney • 4 �. Date of signature: /Z / Zv Z3 pE(SOFissjMR), F=(gR/cP) O711O1a3 2023-1763 PE0010 Cori-vaC+ I.b4+Colgl BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW PASS -AROUND TITLE: Amendment for SECURE Act to 401k/457 Plan DEPARTMENT: Human Resources DATE: 03/06/2023 PERSON REQUESTING: Staci Datteri-Frey / Jill Scott/ Cheryl Pattelli Brief description of the problem/issue: Need final approval on the required updates and provisions from the SECURE Act for our voluntary retirement savings plans. What options exist for the Board? (include consequences, impacts, costs, etc. of options): Approval will keep us in compliance with provisions set forth in SECURE act. No cost associated with change other than fee from attorney for the re -write. Recommendation: Recommendation is for approval. Perry L. Buck, Pro-Tem Mike Freeman, Chair Scott K. Jame Kevin D. Ross Lori Saine A rove Sc a kal Recommendation Work Session Other/Comments: 2023-1763 (0/2.1 P EOOIO AMENDMENT NUMBER TWO WELD COUNTY401(k) SAVINGS PLAN The Plan named above gives The County of Weld, State of Colorado (the "Employer") the right to amend it at any time. According to that right, the Plan is amended effective as of the dates set forth below. This amendment is intended as a good faith effort to comply with the requirements of the Setting Every Community Up for Retirement Enhancement Act of 2019 and corresponding guidance. This amendment will supersede any inconsistent Plan provisions. By adding the following to the Table of Contents: "Section 7.04 SPECIAL RULES" By adding the following at the end of Section 5.05: "Effective January 1, 2023, the Plan permits qualified birth or adoption distributions as a separate distribution event. A Participant may receive a distribution up to $5,000 during the 1 -year period beginning on the date on which the Participant's child is born or on which the legal adoption by the Participant of an eligible adoptee is finalized. An eligible adoptee is any individual (other than a child of the Participant's spouse) who has not attained age 18 or is physically or mentally incapable of self- support. The $5,000 maximum is an aggregate amount of such distributions from all plans maintained by the Employer. The Participant can elect to repay that amount to his or her Plan account. In addition, such amount is not subject to the tax penalty set forth in Code Section 72(t)." By adding the following Section 7.04: "SECTION 7.04 --SPECIAL RULES Notwithstanding any provision of the Plan to the contrary: (a) In defining Required Beginning Date or determining required minimum distributions, any Plan references to age 70-1/2 shall only apply to Participants born before July 1, 1949, and references to age 70 1/2 shall be replaced with age 72 for Participants born after June 30, 1949. (b) With respect to distributions to Participants who die after December 31, 2021, whether before or after distribution has begun, a Participant's entire interest will be distributed to the Designated Beneficiary by December 31 of the calendar year containing the tenth anniversary of the Participant's death unless the Designated Beneficiary meets the requirements of an "eligible designated beneficiary" as set forth below. An "eligible designated beneficiary" may receive distributions over the life of such Designated Beneficiary. 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. An "eligible designated beneficiary" is defined as any Designated Beneficiary who is: (1) the surviving spouse of the Participant; (2) a minor child of the Participant; (3) disabled; (4) a chronically ill individual; or (5) an individual who is not more than 10 years younger than the Participant. The determination of whether a Designated Beneficiary is an "eligible designated beneficiary" is made as of the date of the Participant's death. If an "eligible designated beneficiary" dies before the portion of the Participant's interest is entirely distributed, the remainder of such portion must be distributed within 10 years after such "eligible designated beneficiary's" death." This amendment is made an integral part of the aforesaid Plan and is controlling over the terms of said Plan with respect to the particular item addressed expressly herein. All other provisions of the Plan remain unchanged and controlling. Unless otherwise stated in this amendment, eligibility for benefits and the amount of any benefits payable to or on behalf of an individual who is an Inactive Participant on the effective date stated above shall be determined according to the provisions of the aforesaid Plan as in effect on the day before he became an Inactive Participant. By signing this amendment, the Employer, as plan sponsor, has made the decision to adopt this plan amendment. Signed this /`5? day of ATTEST: Vdr4441 `d"''t1 BY: ,20O2c. . THE COUNTY OF WELD, STATE OF COLORADO BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO Perry L Buck, Pro-Tem JUN 2 12023 020,2,3 / AMENDMENT NUMBER THREE WELD COUNTY 401(k) SAVINGS PLAN The Plan named above gives The County of Weld, State of Colorado (the "Employer") the right to amend it at any time. According to that right, the Plan is amended effective as of the date set forth below. This amendment clarifies the Plan's terms with respect to a certain class of employees, so that the Plan document is made consistent with the Employer's and such class's expectations regarding plan benefits. This amendment will supersede any inconsistent Plan provisions. By replacing the definition of "Eligible Employee" in section 1.02 with the following, effective as of June 1, 2023: "Eligible Employee means any Employee of the Employer, except for Employees who are eligible for any retirement benefits under the Colorado Public Employees' Retirement Association." This amendment is made an integral part of the aforesaid Plan and is controlling over the terms of said Plan with respect to the particular item addressed expressly herein. All other provisions of the Plan remain unchanged and controlling. Unless otherwise stated in this amendment, eligibility for benefits and the amount of any benefits payable to or on behalf of an individual who is an Inactive Participant on the effective date stated above shall be determined according to the provisions of the aforesaid Plan as in effect on the day before he became an Inactive Participant. By signing this amendment, the Employer, as plan sponsor, has made the decision to adopt this plan amendment. Signed this G2/5" day of , 20 025 . THE COUNTY OF WELD, STATE OF COLORADO ATTEST:'') Xito;e1 'Clerk to the Bo / BY: Deputy CI BOARD OF COUNTY COMMISSIONERS WELCOUNTY, COLORADO Perry L. Fuck, Pro—Tem JUN 2 12023 ,eo020-/7‘,& WELD COUNTY 401(k) SAVINGS PLAN SUMMARY OF MATERIAL MODIFICATIONS The purpose of this Summary of Material Modifications is to inform you of a clarification that has been made to the Weld County 401(k) Savings Plan's governing legal document. This clarification affects certain wording in the Summary Plan Description that was previously provided to you. The Summary Plan Description is modified as described below. When You Join You join the plan as an active participant on the day on which you become an employee. This date is your entry date. However, employees who are eligible for any retirement benefits under the Colorado Public Employees' Retirement Association are not eligible for our plan. Contract Form New Contract Reques Information Entity Name. PRINCIPAL FINANCIAL GROUP Contract Name. Entity ID. 01220006933 ❑ New Entity? Contract ID WELD COUNTY 401(K) SAVINGS PLAN AMENDMENT 2 AND 3 6781 Contract Status CTB REVIEW Contract Lead. MRAIMER Contract Lead Email mraimergco.weld.co.us Contract Description. WELD COUNTY 401(K) SAVINGS PLAN AMENDMENTS FOR SECURE ACT COMPLIANCE. Contract Description 2 Contract Type. AMENDMENT Amount. S0.00 Renewable. NO Automatic Renewal NO Grant IGA Department HUMAN RESOURCES Department Email CM- HumanResources::0weldgov.c om Department Head Email CM-HumanResources- DeptHeadAweldgov.com County Attorney GENERAL COUNTY ATTORNEY EMAIL County Attorney Email CM- COU NTYATTORN EYW WELDG OV.COM Requested BOCC Agenda Date 03,27,202.3 Parent Contract ID Requires Board Approval YES Department Project # Due Date 03/23/2023 Will a work session with BOCC be required?* NO Does Contract require Purchasing Dept. to be included? ND If this is a renewal enter previous Contract ID If this is part of a NSA enter ?NSA Contract ID Note: the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts are not in On Base Cant Dates, Effective Date Review Date. 12 09 2024 Renewal Date Termination Notice Period Committed Delivery Date Expiration Date* 12,21 2024 Contact Information Contact Info Contact Name Purchasing Contact Type Contact Email Contact Phone I Contact Phone 2 Purchasing Approver Purchasing Approved Date Approval Process Department Head CHERYL PATTELLI DH Approved Date 06:07 O023 Final Approval BOCC Approved BOCC Signed Date BOCC Agenda Date 06 21 2 02 3 Originator MRAIMER Finance Approver CHERYL PATTELLI Legal Counsel BYRON HOWELL Finance Approved Date Legal Counsel Approved Date 0607,2023 06 12/2023 Tyler Ref # AG 062123 Hello