7254-03
ORDINANCE NO. 7254-03
AN EMERGENCY ORDINANCE OF THE CITY OF
CLEARWATER, FLORIDA, RELATING TO THE CITY OF
CLEARWATER MONEY PURCHASE PENSION PLAN;
AMENDING ARTICLE VII OF THE MONEY PURCHASE
PENSION PLAN DOCUMENT TO COMPL YWITH THE
MINIMUM REQUIRED DISTRIBUTION REGULATIONS
UNDER INTERNAL REVENUE CODE SECTION 401 (A)(9);
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Clearwater has established the City of Clearwater Money
Purchase Pension Plan ("Plan"), as subsequently amended; and
WHEREAS, the City is granted authority to amend the Plan; and
WHEREAS, the City has determined it is in the best interests of participants to
amend the Plan.
BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF CLEARWATER, FLORIDA:
Section 1. The City of Clearwater hereby adopts the Third Amendment to the First
Restatement of the City of Clearwater Money Purchase Pension Plan (the "Plan")
effective upon the effective date of this ordinance, substantially in the form attached
hereto as Exhibit A and made a part hereof.
Section 2. This ordinance shall take effect on January 1, 2003.
Section 3. This ordinance shall stand repealed 90 days following the date of
adoption unless sooner repealed by a nonemergency ordinance on the same subject
adopted prior to such date.
PASSED ON FIRST AND FINAL
READING AND ADOPTED AS AN
EMERGENCY ORDINANCE
December 30. 2003
Attest:
· ssistant City AttorneY~. ~ I1td C{ ~
~nt . GOUde<1.U:C.~_~I_Elf1< 7'
EXHIBIT A
THIRD AMENDMENT TO THE FIRST RESTATEMENT
of
CITY OF CLEARWATER MONEY PURCHASE PENSION PLAN
FOR FINAL MINIMUM DISTRIBUTION REGULATIONS
This Amendment to the City of Clearwater Money Purchase Pension Plan ("Plan"), is
hereby adopted by the City of Clearwater ("City") on the date indicated below, but is effective
for all purposes as of January 1,2003.
WITNESSETH:
WHEREAS, the City adopted the Plan for the exclusive benefit of Plan participants and
beneficiaries; and
WHEREAS, the City reserved the right to amend the Plan; and
WHEREAS, a Plan amendment is necessary to retain the tax qualified treatment of Plan
assets; and
WHEREAS, such an amendment is in the best interests of participants and beneficiaries;
and
WHEREAS, this Amendment of the Plan is adopted to reflect the Final Treasury
Regulations under Internal Revenue Code ("IRC") Section 401(a)(9) on required minimum
distributions; and
WHEREAS, this Amendment shall supersede the provisions of the Plan to the extent
those provisions are inconsistent with the provisions of this Amendment.
NOW THEREFORE, the Plan shall be amended by this Amendment in the following
respects only:
ITEM I:
The following regarding Minimum Distribution Requirements, is added at the end
of Article VII:
1 General Rules.
1.1 Effective Date. The provisions of this Amendment will apply for purposes of
determining required minimum distributions for calendar years beginning with the
2003 calendar year.
1.2 Coordination with Minimum Distribution Requirements Previously in Effect.
If this Amendment is effective earlier than calendar years beginning with the 2003
calendar year, required minimum distributions for 2002 under this Amendment
will be determined as follows. If the total amount of 2002 required minimum
distributions under the Plan made to the distributee prior to the effective date of
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this Amendment equals or exceeds the required mInImUm distributions
determined under this Amendment, then no additional distributions will be
required to be made for 2002 on or after such date to the distributee. If the total
amount of 2002 required minimum distributions under the Plan made to the
distributee prior to the effective date of this Amendment is less than the amount
determined under this Amendment, then required minimum distributions for 2002
on and after such date will be determined so that the total amount of required
minimum distributions for 2002 made to the distributee will be the amount
determined under this Amendment.
1.3 Precedence. The requirements of this Amendment will take precedence over
any inconsistent provisions of the Plan.
1.4 Requirements of Treasury Regulations Incorporated. All distributions
required under this Amendment will be determined and made in accordance with
the Treasury Regulations under IRe Section 40 1 (a)(9).
1.5 TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of
this Amendment, distributions may be made under a designation made before
January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and
Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to
TEFRA Section 242(b )(2).
2 Time and Manner of Distribution.
2.1 Required Beginning Date. The Participant's entire interest will be distributed,
or begin to be distributed, to the Participant no later than the Participant's required
beginning date.
2.2 Death of Participant Before Distributions Begin. If the Participant dies before
distributions begin, the Participant's entire interest will be distributed, or begin to
be distributed, no later than as follows:
(a) If the Participant's surviving spouse is the Participant's sole designated
Beneficiary, then, except as provided in Section 2.2(e), distributions to the
surviving spouse will begin by December 31 of the calendar year immediately
following the calendar year in which the Participant died, or by December 31 of
the calendar year in which the Participant would have attained age 70-1/2, iflater.
(b) If the Participant's surviving spouse is not the Participant's sole designated
Beneficiary, then, except as provided in Section 2.2(e), distributions to the
designated Beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died.
(c) 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
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distributed by December 31 of the calendar year containing the fifth anniversary
of the Participant's death.
(d) If the Participant's surviving spouse is the Participant's sole designated
Beneficiary and the surviving spouse dies after the Participant but before
distributions to the surviving spouse begin, this Section 2.2, other than Section
2.2(a), will apply as if the surviving spouse were the Participant.
(e) Participants or Beneficiaries may elect on an individual basis whether the 5-
year rule or the life expectancy rule in Sections 2.2 and 4.2 of this Amendment
applies to distributions after the death of a Participant who has a designated
Beneficiary. The election must be made no later than the earlier of September 30
of the calendar year in which distribution would be required to begin under
Section 2.2 of this Amendment, or by September 30 of the calendar year which
contains the fifth anniversary of the Participant's (or, if applicable, surviving
spouse's) death. If neither the Participant nor Beneficiary makes an election under
this paragraph, distributions will be made in accordance with Sections 2.2 and 4.2
of this Amendment.
For purposes of this Section 2.2 and Section 4, unless Section 2.2(d) applies,
distributions are considered to begin on the Participant's required beginning date.
If Section 2.2( d) applies, distributions are considered to begin on the date
distributions are required to begin to the surviving spouse under Section 2.2(a). If
distributions under an annuity purchased from an insurance company irrevocably
commence to the Participant before the Participant's required beginning date (or
to the Participant's surviving spouse before the date distributions are required to
begin to the surviving spouse under Section 2.2(a)), the date distributions are
considered to begin is the date distributions actually commence.
2.3 Forms of Distribution. Unless the Participant's interest is distributed in the
form of an annuity purchased from an insurance company or in a single sum on or
before the required beginning date, as of the first distribution calendar year
distributions will be made in accordance with Sections 3 and 4 of this
Amendment. If the Participant's interest is distributed in the form of an annuity
purchased from an insurance company, distributions thereunder will be made in
accordance with the requirements of IRe Section 401(a)(9) and the Treasury
Regulations.
3 Required Minimum Distributions During Participant's Lifetime.
3.1 Amount of Required Minimum Distribution For Each Distribution Calendar
Year. During the Participant's lifetime, the minimum amount that will be
distributed for each distribution calendar year is the lesser of:
(a) the quotient obtained by dividing the Participant's account balance by the
distribution period in the Uniform Lifetime Table set forth in Treasury
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Regulations Section 1.401 (a)(9)-9, using the Participant's age as of the
Participant's birthday in the distribution calendar year; or
(b) if the Participant's sole designated Beneficiary for the distribution calendar
year is the Participant's spouse, the quotient obtained by dividing the Participant's
account balance by the number in the Joint and Last Survivor Table set forth in
Treasury Regulations Section 1.401(a)(9)-9, using the Participant's and spouse's
attained ages as of the Participant's and spouse's birthdays in the distribution
calendar year.
3.2 Lifetime Required Minimum Distributions Continue Through Year of
Participants Death. Required minimum distributions will be determined under
this Section 3 beginning with the first distribution calendar year and up to and
including the distribution calendar year that includes the Participant's date of
death.
4 Required Minimum Distributions After Participant's Death.
4.1 Death On or After Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary. If the Participant dies on or
after the date distributions begin and there is a designated Beneficiary, the
minimum amount that will be distributed for each distribution calendar year after
the year of the Participant's death is the quotient obtained by dividing the
Participant's account balance by the longer of the remaining life expectancy of the
Participant or the remaining life expectancy of the Participant's designated
Beneficiary, determined as follows:
(1) The Participant's remaining life expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.
(2) If the Participant's surviving spouse is the Participant's sole designated
Beneficiary, the remaining life expectancy of the surviving spouse is calculated
for each distribution calendar year after the year of the Participant's death using
the surviving spouse's age as of the spouse's birthday in that year. For distribution
calendar years after the year of the surviving spouse's death, the remaining life
expectancy of the surviving spouse is calculated using the age of the surviving
spouse as of the spouse's birthday in the calendar year of the spouse's death,
reduced by one for each subsequent calendar year.
(3) If the Participant's surviving spouse is not the Participant's sole designated
Beneficiary, the designated Beneficiary's remaining life expectancy is calculated
using the age of the Beneficiary in the year following the year of the Participant's
death, reduced by one for each subsequent year.
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(b) No Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is no designated Beneficiary as of September 30 of
the year after the year of the Participant's death, the minimum amount that will be
distributed for each distribution calendar year after the year of the Participant's
death is the quotient obtained by dividing the Participant's account balance by the
Participant's remaining life expectancy calculated using the age of the Participant
in the year of death, reduced by one for each subsequent year.
4.2 Death Before Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary. Except as provided in Section
2.2( e), if the Participant dies before the date distributions begin and there is a
designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant's death is the quotient
obtained by dividing the Participant's account balance by the remaining life
expectancy of the Participant's designated Beneficiary, determined as provided in
Section 4.1.
(b) No Designated Beneficiary. If the Participant dies before the date distributions
begin and there is no designated Beneficiary as of September 30 of the year
following the year of the Participant's death, distribution of the Participant's entire
interest will be completed by December 31 of the calendar year containing the
fifth anniversary of the Participant's death.
(c) Death of Surviving Spouse Before Distributions to Surviving Spouse Are
Required to Begin. If the Participant dies before the date distributions begin, the
Participant's surviving spouse is the Participant's sole designated Beneficiary, and
the surviving spouse dies before distributions are required to begin to the
surviving spouse under Section 2.2(a), this Section 4.2 will apply as if the
surviving spouse were the Participant.
5 Definitions.
5.1 Designated Beneficiary. The individual who is designated as the Beneficiary
under the Plan and is the designated Beneficiary under IRe Section 401(a)(9) and
Treasury Regulations Section 1.401(a)(9)-I, Q&A-4.
5.2 Distribution calendar year. A calendar year for which a mInImUm
distribution is required. For distributions beginning before the Participant's death,
the first distribution calendar year is the calendar year immediately preceding the
calendar year which contains the Participant's required beginning date. For
distributions beginning after the Participant's death, the first distribution calendar
year is the calendar year in which distributions are required to begin under
Section 2.2. The required minimum distribution for the Participant's first
distribution calendar year will be made on or before the Participant's required
beginning date. The required minimum distribution for other distribution calendar
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years, including the required minimum distribution for the distribution calendar
year in which the Participant's required beginning date occurs, will be made on or
before December 31 of that distribution calendar year.
5.3 Life expectancy. Life expectancy as computed by use of the Single Life Table
in Treasury Regulations Section 1.401(a)(9)-9.
5.4 Participants account balance. The account balance as of the last valuation
date in the calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the account balance as of dates in the
valuation calendar year after the valuation date and decreased by distributions
made in the valuation calendar year after the valuation date. The account balance
for the valuation calendar year includes any amounts rolled over or transferred to
the Plan either in the valuation calendar year or in the distribution calendar year if
distributed or transferred in the valuation calendar year.
5.5 Required beginning date. The date specified in the Plan.
ITEM 2:
This Amendment shall be effective as of January 1,2003.
IN WITNESS WHEREOF, the parties have executed this amendment this 307L- day
of /p,U~ ,2003.
By:
Brian 1. Aungst,
Attest:
BY:~~~~
/NCynth. Goudeau, :0 ~ Clerk
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