HomeMy WebLinkAbout2003 01 27 Regular H - 3 Pension Plan - Pension Plan Resolution and Plan Document
012703 REGULAR H 3 PENSION PLAN
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COMMISSION AGENDA
ITEM
H-3
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
January 27,2003
Meeting
MGRG( t.\ /DEPT
Authorization
REQUEST: City Manager requesting the City Commission receive information regarding the
cash-out provisions of the recommended Pension Plan Resolution and Plan Document.
PURPOSE: This agenda item is needed to clarify cash out provisions in the proposed Pension
Plan Resolution Number 2002-39, and Plan Document.
CONSIDERATIONS:
At the December 9, 2002 Commission meeting three questions were asked about cash out
provisions of the proposed Resolution as follows:
Question 1: Is the cash-out provision automatic or elective?
Answer: The cash-out provisions are automatic.
Recommendation: It is recommended that the recommended cash out provIsIOn remaIn
automatic and that all applicable sections be amended to include the automatic provision.
Question 2: If an employee has 2% annuity and 3% annuity, are the cash out provisions
aggregated to $3,500 or allowed to accumulate to a total of $3,500 in each period?
Answer: The $3,500 limit is aggregated from the 2% period and the 3%.
Recommendation: It is recommended that the language be amended to clarify that it IS
aggregated.
012703 REGULAR H 3 PENSION PLAN
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Question 3: If electives are allowed what is the time frame to make the elective, and how many
times do you have to make an elective?
Answer: Not applicable since the provision is automatic rather than elective.
Recommendation: It is recommended that the automatic ash out provision be sustained as
proposed.
FUNDING: Not Applicable.
RECOMMENDA TIONS:
It is recommended that the automatic cash out provision be sustained as recommended.
ATTACHMENTS: None.
COMMISSION ACTION: