HomeMy WebLinkAboutordinance.council.003-76RECORD OF PROCEEDINGS
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ORDINANCE NO. ~g
(Series of 1976)
AN ORDINANCE REPEALING AND REENACTING THE EMPLOYEES' ?~TIREMENT
PLAN AND TRUST OF THE CITY OF ASPEN; REPLACING THE PRESENT TRUSTEE
AND AUTHORIZING ADMINISTRATION OF THE PLAN AND TRUST BY THE RETIRE-
~IENT cOMMITTEE AND DIRECTOR OF FINANCE; ESTABLISHING A SCHEDULE BY
VIRTUE OF WHICH THE CONTRIBUTIONS MADE BY THE CITY WILL VEST IN
EMPLOYEES ACCORDING TO YEARS OF SERVICE TO THE CITY; ITEMIZING
PERMISSIBLE INVESTMENTS AND AUTHORIZING THE COMMINGLING OF PLAN
FUNDS WITH OTHER QUALIFYING FUNDS, ALL AS MORE PARTICULARLY DESCRIBED
IN THE ORDINANCE
WHEREAS, the City Council has been requested by the
Retirement Plan and Trust committee to amend the present employees'
retirement plan to permit in-house administration and otherwise modify
the provisions thereof,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY cOUNCIL OF
THE CITY OF ASPEN, COLORADO:
Section
Aspen,
1
~hat Appendix A of the Municipal code of the City of
entitled'~mployees Retirement Plan and Trust", be and hereby
is repealed in its entirety.
Section 2
Chat the Municipal code of the city of Aspen, colorado, is
hereby amended by the addition of a new article, Article VII of
chapter 2, which said Article VII reads as follows:
"ARTICLE VII EMPLOYEES' ~.qETIREMENT PLAN AND TRUST
~2.STABLISHING PL_AN AND TRUST; DEFINITIONS
2-100. Establishing Trust. ~here is hereby
established an employees' retirement plan and
trust to supersede that previously established
by the City and finally approved and adopted on
July 10, 1972. This amended plan is designed to
meet the requirementS of Section 401 of the
Internal Revenue code and Title 31, Article 51,
Part 9 of the Colorado Revised Statutes, 1973,
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both of which are designed to authorize the establish-
ment of qualifying municipal pension plans to enhance
the welfare of municipal employees, it is the intention
of this provision that all requirementS of the Revenue
code and State Statutes inconsistement herewith shall
supersede the provisions of this ordinance if necessary
to preserve the plan and the tax exempt status of the
fund created.
2-101. Definitions. For the purposes of this Article VII
of Chapter 2 of the Municipal code the following
definitions shall apply:
(a) Annuity Contract shall mean only a contract that
is nontransferable and that does not continue
beyond the combined life expectancy of the
participant and his spouse, based on acceptable
actuarial tables for an ordinary joint life and
last survivor annuity.
(b) City shall mean the City of Aspen, a colorado
municipal corporation.
(c) committee shall mean the Retirement Plan and Trust
Committee which is the municipal board of retirement
required by Section 24-51-908(2) C.R.S. 1973, and
established by Section 2-900 herein.
(d) Compensation shall mean the rate of base earnings
in effect for an employee at the time of refer-
ence, exclusive of overtime, bonuses and amountS
identified by the City as payment toward business
expenses incurred by the employee without direct
(e)
reimbursement.
Continuous Service shall mean the period of an
's continuous employment by the City, and
employee ....... ~ ~=~vice (as defined in ~ 2-406)
shall lnc±u~e a~ ~ ~
whether or not in fact continuous.
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(f) Director of Finance shall mean the duly appointed
and acting Director of Finance of the city of Aspen
who shall administer the plan and trust as provided
for herein and shall act as treasurer to the
committee and of the retirement plan.
(g) Early Retirement Date shall mean the December 31
after which a participant reaches age 60 and completes
10 years of continuous services, or reaches age 55
and completes 15 years of continuous service or
reaches age 50 and completes 20 years of service or
completes 25 years of continuous service.
(h) Funds shall mean all property held by the Director
of Finance under the terms of the trust hereby
established.
(i) Normal Retirement Date shall mean any December 31
after which a participant reaches age 65 and has
five years (5) of continuous service with the City.
(j) Total and Permanent Disability shall mean a dis-
ability of a potentially permanent nature which
preventS an employee from engaging in any occupation
for wage or profit and which results from illness
or injury which is not self-inflicted and does not
result from alcoholism or the use of narcotics.
PARTICIPATION
2-200. Eligibility RequirementS. ~very officer and
employee who is employed by the City on a regular, full
time basis, excluding elected officials, policemen,
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firemen and any person who is customarily employed
for less than twenty (20) hours in one week, or less
than five (5) months in any calendar year, shall be
eligible to participate in the retirement plan as of
the first of the month next succeeding his completion
of three (3) months of continuous full time employment.
2-201. initial Participation. An eligible officer or
employee shall become a participant hereunder upon
signifying in writing, upon such form as shall from time
to time be prescribed by the committee, his acceptance of
the terms and provisions of the trust and plan, including
a stipulation as to the date on which such officer's
or employee'S most recent period of continuous employ-
ment commenced. _An eligible officer or employee shall
become a participant in the retirement plan as of the
date upon which he first becomes eligible whether or not
he signifies his acceptance prior to such date, unless
the committee in its sole discretion extends the time
because of sickness or absence of the eligible officer
or employee or other extenuating circumstances.
2-202. Required Participation. Participation in the
retirement plan shall be required, as a condition of
employment for all eligible employees of the City
irm~ediately upon becoming eligible. However, nothing
herein shall require participation by those employed
by the city prior to August 1, 1972, who were exempted
from required participation in any retirement plan prior
to the effective date of this ordinance. Any such
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exempt employee may join the plan on the first day of
January, in any subsequent year, provided that prior
to such date he signifies in writing his acceptance
of the terms and provisions of this trust and plan.
2-203. Leaves of Absence. Any participant who is
granted a leave of absence shall remain a participant
during the period of his leave of absence. Leaves of
absence may be granted uniformly for absences due to
illness, nilitary service, temporary layoffs, and
other good reasons. During the period that any
participant is granted a leave of absence, he shall
share in net earnings or losses of trust funds in the
same manner and subject to the same conditions as if
he were not on leave of absence. For purposes of comput-
ing the length of service of a participant, a leave of
absence shall be considered a period of regular employment.
2-204. Reemployment after Termination of Employment. Any
officer or employee reemployed after termination of
employment shall be considered a new employee and his
eligibility and length of service with the city shall
be determined as if he were first employed by the City
as of the date of his most recent employment.
CONTRIBUTIONS
2-300. Contributions by city- Subject to the right of the
City to alter, amend or discontinue this retirement plan,
the City shall contribute for each participant employed
by the City an amount equal to three (3%) percent of the
compensation received by each participant while employed
by the city of Aspen. ~he above amount shall be reduced
for any group that has a retirement plan separate from
this plan to the extent payment by the City intO said
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separate plan exceeds the employee's current social
security contribution rate. ~othing herein shall
preclude any participant in such a plan from contribut-
ing from three (3%) percent up to and including nine (9%)
percent of his compensation to this plan.
2-301. Compensation. Compensation shall mean the
participant'S total compensation for the period in
question, including vacation and holiday pay but ex-
clusive of (a) compensation for any hours in excesS
of forty (40) per week, (b) any overtime or other
premium whether or not paid in respect of hours refer-
red to in (a) above, (c) any compensation received for
services rendered prior to date of participation, and
(d) any payment received under this plan or other
retirement, disability, health, supplemental unemploy-
ment benefit, or similar plan. In the case of a
participant whose employment terminates on account of
retirement at or after early retirement date, death, or
total and permanent disability as a result of physical
or mental infirmity, the compensation of such a
participant for the year in which such event occurs shall
be compensation of such participant up to his termination
date.
2-302. Contributions by Participants. ~!ach participant
must elect to contribute from three (3%) percent up to and
including nine(9%) percent of his compensation for the
period that he is a participant in the plan, provided,
however, that no fractional percentages within this range
are to be permitted. Chis election must be submitted in
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writing to the committee the month preceding the month
of participation. ~hereafter, this election can only
be changed between December 1 and December 15 of each
year. Contributions of participantS shall be effect-
ed by payroll deductions in accordance with procedures
established by the city.
2-303. Discriminatory Contributions. If the committee
shall be of the opinion that the contributions of any
participant or group of participantS might result in
discrimination in benefits in favor of employees who are
officers, supervisory or highly compensated employees,
and thereby cause the plan to violate the regulations
of the treasury department relating to qualified
employees' pension plans, the committee shall have the
right to cause such adjustmentS to be made in the current
or future contributions of such participant or partici-
pants as will, in the committee'S opinion, avoid
such discrimination. ~he decision of the committee in
this regard shall be final and shall not be subject to
question by the City or by any participant or participantS,
and the committee shall not be liable to any participant
for any damages resulting from its exercise or failure
to exercise such rights.
ACCOUNTING PROVISIONS ~ND ALLOCATIONS
2-400. common Fund. The trust fund shall be a common
fund in ~hich each participant'S share shall consist of
an undivided interest in the respective ne% assets of
the trust fund. Each participant's share in the trust
fund shall be measured by the proportion that the net
credits to his account at the end of the last completed
(calendar) quarter year bear to the total net credits
to the accountS of all participants as of such date.
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2-401. Receipts by Participants. Prior to the time that
distributions are to be made hereunder, the participants,
their spouses, beneficiaries, heirs at law, or legal
representatives shall have no right to receive cash
or other thing of value, from the trustee, or the
committee from or as a result of the trust.
2-402. Determination of Value of Trust Fund and of Net
Earnings or Losses. As of December 31 of each year,
the Director of Finance shall determine for that period
then ended the sum of the net earnings or losses of the
trust fund (including the net adjustments in the value of
the trust fund) which shall reflect (a) interest,
dividends, the annual increment on United States of
America Savings Bonds and similar securities, gains,
realized from the sale, exchange or collection of assets,
other income received and appreciation in market value
of assets, and (b) losses realized from the sale, ex-
change or collection of assets, depreciation in market
value of assets, administration expenses, taxes and
charges paid. In determining market value, the Director
of Finance shall use the most recent valuation of a
pooled fund, in which the trust fund is invested,
current market prices or quotation, if available, but
otherwise the Director of Finance shall use market value
as he deems fair, and his judgment with reference theretO
shall be conclusive upon all persons.
2-403. Allocation of Net Earnings or Losses. As of
December 31 of each year, the net earnings or losses of
the trust fund for the year then ended shall be allocated
to the accounts of all participants having credits in
the trust fund based on the ratio that each participant'S
total credits (as of the last quarter end) bears to the
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total net assetS of the common fund at each calendar
quarter end.
2-404. Allocation of city's Contributions- The Account
of each participant shall be credited with the amount
contributed by the City for his benefit as provided in
Section 2-300 hereof.
2-405. Participants' AccountS. For each participant
there s~all be maintained a separate account which shall be:
(a) Credited with the following items:
(i) The participant'S own contributions;
(ii) The Participant'S vested share in
the city's contributions made on his behalf (including
vested past service credits);
(iii) The participant'S unvested share in
the City's contributions made on his behalf (including
unvested past service credits);
(iv) The participant'S proportionate share
in the net earnings of the trust fund attributable
to his contributions and vested City contributions
made on his behalf (including vested past service
credits); and
(v) The participant'S proportionate share in
the net earnings of the fund attributable to un-
vested city contributions made on his behalf (includ-
ing unvested past service credits).
(b) Charged with the following items:
(i) The participant's proportionate share of
net losses of the trust fund attributable to his
contributions and vested City contributions made
on his behalf (including vested past service
credits);
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(ii) The participant's proportionate share
of net losses of the trust fund attributable to
unvested City contributions made on his behalf
(including unvested past service credits);
(iii) In the case of a participant who is
dismissed or resigns from the service of the City,
any part (or all) of his account which is forfeited
as provided in Section 2-604; and
(iv) Distribution to a participant or his
beneficiary, whether made in cash or kind, or by
the placing of amounts in a segregated fund, or by
the distributions from an annuity or endowment
income contract on behalf of the participant or his
beneficiary.
2-406. Past Service Credits. In the event any participant
in the retirement trust and plan was an eligible employee
(as defined in Section 2-200) prior to the creation
of any retirement plan and trust by the City of Aspen,
such employee shall be credited with a 3% contribution
by the City of Aspen (as defined in Section 3-300) for the
(whether continuous or not)
entire period of eligible employment/prior to the establish-
i~ent of any such retirement plan and trust. 5?his credit
shall be known as the "past service credit" and vest at
the same rate as present contributions of the City as
described in Section 2-600.
2-407. Forfeitures. ~mounts forfeited in accordance with
provisions of various sections herein shall first be
applied to pay the administrative costs of the fund; then
applied to early funding of past service credits (as
defined in Section 2-406); and any balance shall be
refunded to
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the City of Aspen to reduce its current year
required contributions.
RETIREMENT DATED
2-500. Normal Retirement. The normal retirement age
each participant shall be on his or her sixty-fifty
(65th) birthday after five years of continuous service
(defined as the normal retirement date). In the event
the retirement of any participant is deferred by the
City of Aspen, during such deferment the participant
shall continue his or her full participation in the
plan and trust fund. Such period of deferment may be
terminated and retirement effected at the end of any
full year of deferment by either the participant or the
City by notice of one to the other at least ninety (90)
days prior to the close of the year.
for
2-501. Early Retirement. Any participant may retire as
of the last day of the year in which his 60th birthday
occurs and upon completing 10 years of continuous service
with the City, or in which his 55th birthday occurs upon
completing 15 years of continuous service with the City,
or in which his 50th birthday occurs and upon complet-
ing 20 years of continuous service with the City, or on
the last day of the year in which he completes 25 years of
continuous service with the City, ~hich dates shall be
the early retirement dates for all participants.
VESTING OF CONTRIBUTIONS AND DISTRIBUTIONS
FROM THE TRUST FUND
2-600. Vesting. All contributions to the fund made by
the participants shall immediately vest and be non-
forfeitable. There shall also vest in each participant
(at the end of each full year of continuous employment)
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ten (10%) percent of the City's contribution for
such immediately preceeding calendar year, plus an
additional ten (10%) percent of each previous year's
contribution as illustrated in the following schedule:
Full Years
of Employment
One
Two .
Three
Percent of City's Contribution Vesting
10% of first year's contribution
An additional 10% of the first year's
contribution, plus 10% of the second
year's contribution
An additional 10% of the first year's
contribution, an additional 10% of the
second year's contribution, plus 10% of
the t~rd year's contribution...
and so on such that after ten years of service 100%
of the City's first year contribution has vested,
90% of the City's second year's contribution has
vested, et cetera. Once a given year's contribution
has entirely vested, no further amounts attributable
to the City's contribution for that year shall vest.
2-601. Manner of Distribution on Retirement. When a
participant contemplates retirement, he shall elect the
manner of distribution of his account by November 30
of the year he will retire. Subject to the approval
of the committee, he shall be entitled to receive the
entire balance of this account in any of the following
ways, or combinations thereof:
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(a) In a lump sum within 120 days after the date of
retirement.
(b) By the purchase, within 120 days after retire-
~lent with the participant's account monies, of
a single premium annuity contract by the
committee from a legal reserve life insurance
company for the benefit of the participant
and his spouse, and such contract shall be
for such term and in such form as the committee
in its discretion shall determine after consult-
ing with the participant. Payments under such
contract shall begin not later than 90 days
after issuance of the contract. Uayment of
the premium to the insurance company issuing
such annuity contract shall, to the extent
of the cost of the contract, constitute a
complete settlement and discharge of the
participant's vested interest.
(c) In periodic installments of a specified amount
payable annually, semi-annualS, quarterly or
participant's vested
monthly until the~nterest is paid in full, or
a specified number of payments have been made
.the vested
~n'd / interest has been paid in full. Install-
ment distributions under this paragraph shall
be made as of the first day of any month over
a period not to exceed ten years, commencing
not later than 90 days after the valuation
date next following retirement. All amounts
remaining in an account at the end of such ten
year period shall be paid to the former partic-
ipant, or his beneficiary, unless otherwise
agreed by the committee and the former participant
or his beneficiary. The committee may direct
at any time that the manner of distribution be
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modified or changed or that such installments
be accelerated and paid in a lump sum.
2-602.
Total and Permanent Disability. As of the date
of death of any participant, his beneficiary or his
estate shall be entitled to receive the entire
balance of his account in one of the methods set
forth in Section 2-601, or any combination
The method selected by the beneficiary ol
be subject to approval of the committee.
date any participant shall be determined by the
committee to have become totally and permanently
disabled because of physical or mental infirmity,
he shall be entitled to receive the entire balance
of his account in one of the methods set forth in
Section2-601 or any combination thereof. The
method selected by the participant shall be subject
to the approval of the committee. The participant
shall be deemed totally and permanently disabled
when on the basis of qualified medical evidence
the committee finds such participant to be totally
and presumably permanently prevented from engaging
in any occupation or employment for wage or profits
as a result of physical or mental injury or disease,
either occupational or non-occupational.
thereof.
estate shall
As of the
2-603. Resignation or Dismissal Other Than for Gross
Misconduct of Dishonesty. As of the date any
participant shall resign from the service of the
City or be dismissed other than for a cause specified
in Section 2-604, he shall be entitled to receive,
subject to the approval of the committee, the vested
portion of his account in any of the following
ways or combination thereof:
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(a)
(b)
(c)
He may receive a lump sum distribution
o~ all contributions made by him and his
accrued interest in the City's contributions,
plus earnings and fund changes.
He may elect to have the committee purchase
a life annuity contract from a legal reserve
life insurance company to begin distribution
not later than 90 days after the participant
attains retirement status, as determined by
the committee. For purchase of said con-
tract the committee shall use (i) all of
the participant's contributions, earnings
and fund changes and (ii) the vested share
of the City's contributions, earnings and
fund changes.
The participant may elect to leave in the
plan all of his contributions, earnings and
fund changes, and his vested share of the
City's contributions, earnings and fund
changes, in which event he shall, on attaining
retirement status (as determined by the
committee), elect the manner of distribution
of his account by November 30th of the year
he will retire. Subject to the approval
of the committee, he shall be entitled to
receive the entire balance of his account
as provided for in Section 2-$01. As of the
date of death of any participant or as of the
date any participant shall be determined by
the committee to have become totally and per-
manently disabled because of physical or
mental imfirmity, he shall be entitled
to receive the entire balance of his account
as provided in Section 2-602
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2-604. Dismissal for Gross Misconduct or Dishonesty. As
of the date any participant is dismissed from the ser-
vice of the City because of participation in theft,
fraud or embezzlement from the City, or gross misconduct
while on duty, which results, or is intended to result,
in significant financial loss or damage to the City,
he shall receive a lump sum distribution of all con-
~ributions made by him, plus earnings and fund changes
attributable to such contributions, and the provisions
of Section 2-600 to the contrary notwithstanding, he
shall forfeit all vested and unvested portions of the
city's contribution and earnings attributable thereto.
2-605. Method of Pay-Out. In the event a participant
requests, or a section of this Article requires, a lump
sum distribution, the participant shall receive all con-
tributions having vested (plus earnings and fund changes
attributable to these amounts) as of the December 31 next
preceding, but not coinciding with, his termination. In
addition, he shall receive all his and any vested City
contribution from the preceding January 1 to his termin-
ation date, but shall forfeit all earnings and fund
changes attributable to these amounts, which forfeited
portion of the account shall be applied as provided in
Section 2-407.
DESIGNATION OF BENEFICIARIES AND
DISTRIBUTION TO BENEFICIARIES AND MINORS
AND OTHERS UNDER LEGAL DISABILITY
2-700. Beneficiaries. Any participant may designate
as his beneficiary in case of death the person or
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2-701.
persons to whom his share in the trust fund
shall be paid. The designation shall be in
such written form as the committee requires and
may include contingent or successive beneficiaries.
In the event of a participant's death, payment
shall be made of the share in the trust fund to
which his beneficiary or beneficiaries named in
the most recent designation which has been
properly completed and filed with the committee
by such participant. The beneficiary or beneficiar-
ies designated by a participant may be changed at
any time and from time to time, at the election of
the participant but only by his filing with the
committee a new designation revoking all prior
designations. If a participant files no design-
ation of beneficiary, or has revoked all such
designations, or if his designated beneficiary or
beneficiary shall predecease him or, having sur-
vived him shall die prior to the final and complete
distribution of the participant's share, the
share or undistributed portion of the share of
such deceased participant shall be paid to the
executor or administrator of the estate of such
deceased participant. Any payment made by the
trustee in accordance with this section shall
fully acquit and discharge the trustee from all
further liability on account thereof.
Minors and Other Persons Under Legal Disability.
Distributions to a minor or person under legal
disability shall be made, at the discretion of the
committee, either (a) directly to said person;
(b) to either one or both of the natural or adoptive
parent or parents, or to the legal guardian or
conservator of said person; or (c) by expending
the same for the education and maintenance of said
person. ~!xcept as to (c) immediately above, the
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committee shall not be required to see to the
application of any such distributions so made to any
of said persons, but his or their receipt therefor
shall be a full discharge for the committee.
INVESTMENTS OF TRUST FUND
2-800. Investments Authorized. The committee is hereby
appointed the trustee of the fund and is authorized to
invest the trust fund, without distinction between
principal and income, in such bonds, notes, debentures,
mortgages, equipment trust certificates, real property
and in loans secured by first mortgages (except as here-
inafter specified) on real property, in participation
guarantee agreements with life insurance companies,
other types of investment agreements (including the
Metropolitan Life Pension Group Thrift/Savings Plan),
preferred or common stock, and such other investments
or securities as may be allowed by law, either with or
without the State of Colorado, as the committee in its
sole discretion may deem advisable . investments shall
be made by the Director of Finance with the advice and
consent of the committee. The Director of Finance may
cause all or any part of the money of this trust to be
commingled with monies in other funds which are
qualified pension funds within Internal Revenue Depart-
ment regulations, or may hold any portion of the trust
fund in cash or in a savings account or other account
of an insured banking institution. The committee shall
direct in writing the investment of the trust fund and
it shall be the duty of the Director of Finance to act
in accordance with such direction, and shall be under
no liability for any loss resulting for so acting.
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2-801. Insurance Contracts. At the written direction
of the committee, the Director of Finance shall pur-
chase such ordinary life insurance contracts, endowment
insurance contracts, annuity contracts, retirement
annuity contracts, or any other form or forms of
contracts issued on an individual or group basis by
life insurance companies as may be specified by the
committee. Any such insurance contracts must be of
the type to provide cash reserves at least equal to those
produced by an ordinanry life insurance contract. The
Director of Finance, when and if so directed, shall
have full power to and shall deal with and dispose of
such insurance contracts, pay premiums to the participant's
contributions, purchase payments, or other forms of
consideration therefor and exercise any and all
rights, privileges, options and elections thereunder.
~he Director of Finance shall have no duty to inquire
into the terms and provisions of any application or
other documents executed by him upon the direction of
the committee or of any insurance contracts acquired
by or delivered to it, nor to see that the terms acquired
~!' by or delivered to it, nor to see that the terms and
provisions of this plan have been complied with.
2-802. Personal Loans to Employees. Provisions of Sec-
tion 2-800 to the contrary notwithstanding, the
committee may, on such conditions and terms as it shall
specify, make, from the pension fund, personal loans to
participants in this retirement plan and trust up to
100% of such participant's vested interest in the fund
at the time such loan is made, provided that all repay-
ments be directly deductible from the participant's
employment checks.
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2-803. Liability with Respect to Investments. The
Director of Finance shall not be liable for the mak-
ing, retaining or disposing of any investment made
by him as herein provided, nor for any loss or
diminution of the trust fund, except such loss or
diminution as results from his own negligence, willful
misconduct or lack of good faith, and shall be indemnified
and saved harmless by the trust fund from and against all
other liability to which he may be subjected by reason
of the making, retaining or disposing of any investment,
including all expenses reasonably incurred in his defense.
POWERS AND DUTIES OF COMMITTEE
2-900. ~owers and Membership. Full and complete control
and management of this retirement plan and trust shall be
exercised by a municipal board of retirement herein called
the "Retirement Plan and Trust Committee" or "Committee",
which shall consist of five (5) members, one of whom shall
be the Director of Finance, two (2) of whom shall be
municipal employees elected by the municipal employees,
and two (2) of whom shall be qualified electors of the
City of Aspen not connected with the municipal government
and chosen by the Aspen City Council. The employee
members shall be elected within thirty (30) days after
the retirement plan shall have been adopted, and all
members shall have four (4) year staggered terms, the terms
to be established by the committee by its own rules.
2-901. Powers and Duties of the committee. The committee
shall have the powers and duties to do all acts and
things necessary or convenient to the carrying out of its
functions under this plan and trust and not inconsistent
with any of the terms and provisions hereof, whether or not
such powers and duties are specifically enumerated herein.
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2-902.
'2-903.
2-904.
committee Proceedings. The committee shall meet
and act as a body and the individual members there-
of shall have no powers and duties as such. On
all matters the decision and action of a major-
ity of the members shall constitute the decision
and action of the committee, provided that during
any period when there exists one or more vacancies
on the committee or one or more members thereof
are outside the United States, a majority of the
remaining members in the United States shall have
full power to act. The committee shall at all
times keep an accurate record of its proceedings
and acts. It may, from time to time, n~ake general
or special rules and regulations for the conduct
of its affairs and the administration of the plan;
provided, however, that such rules and regulations
shall not be inconsistent with the terms and pro-
visions of this plan or be in violation of any
law of the State of colorado or of the United
States of America.
Securing the Legal, Accounting and Clerical
Services by the Committee. The committee may from
time to time consult with counsel and/or accountants
(who may be counsel or accountants for the city)
and the opinion of such counsel with respect to
legal matters shall be full and complete authoriz-
ation and protection in respect of any action taken
or suffered by the committee in good faith and in
accordance therewith. The committee may also from
time to time use employees of the city as clerical
assistants.
Securing of Medical Advice by the Committee. For
the purpose of determining whether a participant
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2-905.
2-906.
2-907.
is totally and permanently disabled, the committee
may from time to time consult with physicians. The
fees and expenses of such physicians shall be deemed
reasonable and necessary expenses of the trust fund
and paid by the trustee therefrom.
Liability of the Committee. Neither the committee
nor any member thereof shall incur any liability
of any nature in connection with any act done or
omitted to be done in good faith in its or his
capacity as such, and the committee and each
member thereof shall be indemnified and saved
harmless by the trust fund from and against any
and all liability to which subjected by reason of
any such act or conduct, including all expenses
reasonably incurred in its or their defense.
Construction of Terms and Provisions of this
Agreement. The committee shall be empowered to
interpret any provision or provisions of this agree-
ment and any beneficiary designation filed hereunder
which is or are ambiguous and to decide any dis-
pute as to the person or person entitled to the
distributions hereunder, and any good faith inter-
pretation or decision shall be binding on the
trustee, the city and the participants hereunder
and their beneficiaries and estates and any other
persons claiming hereunder.
Notifications by Committee. The committee shall
notify the director of finance in writing of all
facts which may be necessary in order to determine
the proper allocation of contributions and net
earnings or losses of the trust fund, and in
order to determine the eligibility of participants
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2-908.
and the bases upon which distributions of any
kind are to be made, including length of service,
compensation of services, dates of death, permanet
disability, granting or terminating of leaves of
absence, ages, retirement, non reelection, dis-
missal, death, disability or retirement, and
existence and content of nonexistence of effective
designations of beneficiaries, to the extent that
the same may be necessary for the fulfillment of
the terms of this agreement.
The committee shall be under no obligation to
enforce payment of contributions hereunder or to
determine whether contributions hereunder comply
with the provisions hereof relating to contributions,
and is authorized to act upon the basis of notific-
ations and to rely upon any document or signature
believed to be genuine and be protected in so doing.
For the purposes of this section a letter or
other written document signed in the name of the
city by its official representative, or in the name
of the trustee by an officer thereof shall con-
stitute a notification or directive therefrom
respectively.
Committee Secretary. The committee may appoint a
secretary who need not be a member thereof, and
who shall be delegated such duties as the committee
determines. The appointment of such secretary
shall be certified to the director of finance by at
lease four (4) of the committee members, and the
removal of the secretary or appointment of a new
secretary shall be similarly certified. During
the period a secretary is action, the director of
finance shall be fully protected in relying upon
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2-1000.
2-1001.
2-1002.
any notification or directions signed by the
secretary for the committee.
ACCOUNTING REPORT
Annual Report. Annually within sixty (60) days
following the close of the preceding year, the
director of finance shall file with the city
Council and committee a written accounting setting
forth a description of all ~ves~ments and other
property purchased and sold, and all receipts,
disbursements, and evidence of all other trans-
actions occurring with reference to the fund dur-
ing said year, and listing
other property held in the
of such year.
the investments and
trust fund at the end
Approval of Director's Account. The city Council
and the committee may approve the account by
written notice of approval or by failure to express
objection in writing delivered to the director of
finance within fifteen (15) days from the date upon
which they were delivered to the City Council and
the committee. On approval, the director of
finance shall be released and discharged as to
all items, matters and things set forth in such
account as if the account had been settled and
allowed by a decree of court.
Report of Participants. Within fifteen (15) days
after approval of the account the director shall
report to each participant itemizing the partic-
ipant§ contributions, City's contributions made
for each participant, and the earnings and fund
changes attributable to the amounts.
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2-2000.
~'2-2001.
2-2002.
2-2003.
AMENDMENT OR TERMINATION
Amendment to Conform with Law. The City reserves
the right to make by amendment such changes in,
additions to, and substitutions for the provisions
of this trust, to take effect retroactively or
otherwise as may be necessary or advisable for the
purpose of conforming the Trust and Plan to Section
401 of the Internal Revenue Code or to any other
present or future federal law relating to trusts
and plans of this or similar nature.
Other Amendments and Termination. The City also
reserves the right to amend this trust at any
time and from time to time in any manner which it
deems desirable including, but not by way of limit-
ation, the right to increase or diminish contributions
to be made by it hereunder, to terminate permanently
its agreement and obligation to make any contrib-
utions hereunder, to change or modify the method
of allocation of its contributions, to change any
provision relating to the administration of the
trust, and to change any provision relating to the
distribution or payment, or both, of any of the
assets of the trust.
Form of Amendment. Any such amendment shall be made
by an instrument in writing, signed by a duly
authorized officer or officers of the city certify-
ing that said amendment has been authorized and
filed with the committee and the director of
finance.
Limitations on Amendments. The provisions of this
article are subject to and limited by the following
restrictions:
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(a) No such amendment shall operate either
directly or indirectly to give the City any
interest whatsoever in any funds or property
held by the trustee under the terms hereof, or
to permit corpus or income of the trust to be
used for or diverted to purposes other than the
exclusive benefit of persons who are at any
time on or after the date hereof employees
of the City and the beneficiaries of such
persons.
(b) Except to the extent necessary to produce con-
formity to the laws and regulations described
in Section 2-2000 above, no such amendment shall
operate either directly or indirectly to de-
prive any participant of his beneficial inter-
est in his separate trust account as it is
constituted at the time of the amendment.
2-2004. Vesting Upon Termination; Liquidation of Trust. In
the event that any amendment to this trust agree-
ment should permanently terminate the City's agree-
ment to make contributions to the trust fund
(notice of which shall be given 'to the committee,
to the director of finance, and 'the participants in
writing), the full value of the share in the trust
fund of each participant shall immediately become
vested in him. When each such participant's termin-
ation date occurs, the director of finance shall
make or commence distribution to him or his
beneficiaries of the value of such participant's
share as provided in Article 4 However, if,
after such a termination of the plan the
committee shall determine it to be impractical to
continue the trust any longer, it may, at its
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2-3000.
2-3001.
discretion, declare the next succeeding June 20
to be the termination date for all participants
for the purposes of the plan, and shall certify
said determination to the director of finance.
The director of finance shall thereupon, as promptly
as shall then be reasonable under the circumstances,
liquidate the trust assets and distribute to each
participant his share in the trust fund. For his
purpose, the final liquidation date shall con-
stitute the termination date for participants
and the final distribution date for each former
participant whose share is being distributed in
installments. Upon completion of liquidation and
distribution of the trust assets, the trust shall
finally and completely terminate.
MISCELLANEOUS PROVISIONS
No Guarantee of Employment, etc. Neither the
creation of this trust nor anything contained in
this agreement shall be construed as giving any
participant hereunder or other employee of the
City any right to remain in the employ of the
City. It is understood that the rights and inter-
ests of the participants and their beneficiaries
hereunder shall be limited to the contributions
actually paid by such participants and by the City
to the director of finance.
Rights of Participants and Others. No participant
shall have any right to pledge, hypothOcate,
anticipate, or in any way create a lien upon any
part of the trust fund. Distributions to partic-
ipants, their beneficiaries, spouses, heirs-at-law,
or legal representatives, excepting minors and
2-3002.
persons under legal disability, shall be made
only to them and upon% their personal receipts
or endorsements, and uo interest in the trust
fund, or any part thereof, shall be assignable
in anticipation of payment either by vo].untary
or involuntary act, or defaults of such partic-
ipants, their beneficiaries, spouses, or heirs-
at-law.
Internal Revenuc Service Qualifications. This plan
is subject to the condition precedent that it shall
be approved and qualified by the Internal Revenue
Service Code of 1954 and regulations issued there-
under with respect to the tax exempt status of the
trust, and if the Internal Revenue Service rules
that this plan is not qualified, the City and the
participants shall recover all contributions
which have been made by them respectively prior
to the initial determination as to qualification."
Section 3
If any provision of this ordinance or the application thereof
to any person or circumstance is held invalid, such invalidity
shall not affect other provisions or applications of the ordinance
which can be given effect without the invalid provisions or applic-
ations, and to this end the provisions or applications of this
ordinance are declared to be severable.
Section 4
A public hearing on this ordinance shall be held on the
7 _~ .... ~, 197~ at 5 P.M. in the City Council
day of~ ,
Chambers, Aspen City Hall, Aspe , colorado.
INTRODUCED, READ AND ORDERED published as provided by law
-27-
by the City Council of the City of Aspen, at its regular meeting
held ~_~ , 197 6. - ~
ATTEST:
Kathryn .~uter, City Clerk
A1 ~w~--~.-~ /
ATTEST: Sta~' Stan~.ey III, ~yor
Kathryn ~uter, City Clerk
-28-
RECORD OF PROCEEDINGS
100 Leaves
STATE OF COLORADO )
)
COUNTY OF PITKIN )
ss. CERTIFICATE
I, Kathryn S. Hauter, City Clerk of Aspen,
Colorado, do hereby certify that the above and foregoing
ordinance was introduced, read in full, and passed on
~--~.~-~ reading at a regular meeting of the
City Council of the City of Aspen on ~c~¢~ .~ ,
197~' and published in the Aspen Times, a weekly newspaper
of general circulation, published in the City of Aspen,
Colorado, in its issue of ~'~/1~ ~'? 197~.,
? ~%~ ,
and was finally adopted and approved at a regular meeting
of the City Council on /~~t~ ~ , 197~,
and ordered published as Ordinance ~o. ~ , Series of
197 ~, of said City, as provided by law.
IN WITNESS WHEREOF, I have he=eunto set my hand
and the seal.~ of said City of Aspen, Colorado, this
day of ,
Kath~,n S. Hauter
Citk~ Clerk