Loading...
HomeMy WebLinkAboutResolutions - 1999.09.23 - 25877September 23, 1999 MISCELLANEOUS RESOLUTION # 99255 BY: Personnel Committee, Tom Law, Chairperson IN RE: DEFINED CONTRIBUTION INCREASE, CHANGE IN INVESTMENT OPTIONS, LOAN PROVISION CHANGE, AND ADDING DESIGNEES TO RETIREMENT COMMISSION To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the County of Oakland continues to explore opportunities to control personnel costs while maintaining a competitive salary and benefit package; and WHEREAS, the Michigan Attorney General, in 1991 Opinion Number 6697, Page 116, confirms that the County may, without violating the State Constitutional protection of contractual obligations, modify retirement benefits to current Members it if provides alternative benefits in their place that are equal to or greater than pension benefits that would be limited or withdrawn; and WHEREAS, the approval of changes to the Retirement System requires the approval of the State of Michigan State County Pension Plan Committee, in addition to authorization by the County Board of Commissioners; and WHEREAS, it has been the practice of the Oakland County Retirement Commission to obtain the approval of the U.S. Internal Revenue Service and to condition any Plan Amendment on obtaining a determination letter that the proposed Amendment does not adversely affect the tax-qualified status of the Retirement Plan. NOW THEREFORE, BE IT RESOLVED that the Board of Commissioners amend the Defined Contribution part of the Oakland County Employee's Retirement System Resolution as follows: BE IT FURTHER RESOLVED that Subsection 3(d), Allocation shall be amended from: (d) allocation means allocation of the County's contribution to the DC part. The allocation to the Provisional Account of each non-represented Member who either was hired or received an offer of employment from the County after the Effective Date of the DC part of this Retirement System shall be 5% of such Member's Compensation for the Plan Year. The Allocation to the Provisional Account of each represented Member shall be as determined by their respective collective bargaining agreement. Picked Up Member: The Allocation to the Provisional Account of each non- represented Member who elected to participate in the DC part of the Retirement System in accordance with Section 35 shall be determined by whether he irrevocably elects to participate in the "Pick Up Part" of the DC part. Such irrevocable election for each non-represented Member shall require a Member Contribution of 3% of Compensation. Personnel Committee Vote: Motion carried on unanimous roll call vote with Colasanti absent. The County's contribution for such electing non-represented member shall be 9% of Compensation. The irrevocable election and the County's Contribution for represented Members shall be determined by their respective collective bargaining agreement. Nothing contained herein shall authorize or grant a member the option of choosing to receive the contributed amounts to the "Pick Up Part" directly instead of having them paid by the County to the DC part of the Retirement System. Notwithstanding anything contained herein to the contrary, if a Member irrevocably elects to participate in the "Pick Up Part" of the DC part, the amounts identified as a Member Contribution shall be paid by the County to this System and not paid to the member. Nor shall anything contained herein authorize such electing member to attempt to make contributions to the System that qualify as a "Pick Up" contribution. Non-Picked Up Member: the Allocation to the Provisional Account of each non- represented Member who elected to participate in the DC part of the Retirement System in accordance with Section 35 and who did not irrevocably elect to participate in the "Pick Up Part" of the DC part shall be 6% of such member's Compensation for the Plan Year. Such non-electing member can contribute up to 10% of Compensation in accordance with Section 27. If a Member elects to make both a "Pick Up" Contribution and a "Non-Pick Up" Contribution, the Non- Pick Up contribution shall be limited to 10% of Section 415 Compensation. To provide the following: (d) Allocation means allocation of the County's contribution to the DC part. The amount of their Allocation depends on whether the Member is Represented or Non-Represented; hired or had received an offer of employment from the County before the Effective Date of the DC part of the Retirement System ("Current Member") or was hired or received an offer of employment from the County after the Effective Date of the DC part of the Retirement System ("New Member"); or made an irrevocable election to participate in the "pick up part" of the DC part ("Picked up Member") or had not ("Non-Picked Up Member"). No New Member can be a Picked Up Member before January 1, 2000. (1) the Allocation to the Provisional Account of each Non-Represented New Member shall be 5% of such Member's Compensation for the Plan Year through the Plan year ending December 31, 1999 ("Per-Year 2000 Contribution Level"). The Allocation to the Provisional Account of each such Non-Represented New Member after December 31, 1999 shall be determined by each such Non-Represented New Member in the following manner: Effective January 1, 2000, each Non-Represented New Member shall irrevocably elect whether to continue at the Pre-Year 2000 Contribution Level or to participate in the "Year 2000 pick up part" of the DC part. 2 Such irrevocable election for each Non-Represented New member shall require a Member Contribution of 2% of Compensation for the remainder of such Member's period of employment with the County unless he/she elects to participate in the Year 2001 pick up part of the DC part. The County's Contribution for each such electing Non-Represented New Member shall be 7% of Compensation for the remainder of such Member's period of employment with the County unless he/she elects to participate in the "Year 2001 pick up part" of the DC part. Effective January 1, 2001, each Non-Represented New Member shall irrevocably elect to continue at the Pre-Year 2000 Contribution Level, the Year 2000 pick up part or to participate in the "Year 2001 pick up part" of the DC part. Such irrevocable election for each Non-Represented New Member shall require a Member Contribution of 3% of Compensation. The County's Contribution for each such electing Non-Represented New Member shall be 8% of Compensation. If a Participant described in this Subparagraph does not elect to be part of either the "Year 2000 pick up part" or the "Year 2001 pick up part", then the county's contribution on their behalf shall continue at the 5% of Compensation level. (2) Picked up Member. Notwithstanding anything contained herein to the contrary, effective January 1, 2000, each Non-Represented Current Member who elected to participate in the DC part of the Retirement System in accordance with Section 35 shall be given the opportunity to irrevocably elect to participate in the "Year 2000 pick up part" of the DC part. Such irrevocable election for each Non-Represented current member shall require an additional Member Contribution of 1% of Compensation (4% total). The County's Contribution for such electing Non-Represented Current Member shall be 10% of Compensation. Notwithstanding anything contained herein to the contrary, effective January 1, 2001, each Non-Represented Current Member shall be given the opportunity to irrevocably elect to participate in the "Year 2001 pick up part" of the DC part. Such irrevocable election for each Non-Represented Current member shall require an additional Member Contribution of 1% of Compensation (5% total). A Non-Represented Current Member shall require an additional Member Contribution of 1% of Compensation (5% total). A Non-Represented Current Member who did not make an irrevocable election of 1% for the "Year 2000 pick up part" may make an irrevocable election to participate in the "Year 2001 pickup part" at only the 2% additional level (5% total). The County's Contribution for such electing Non-Represented current member shall be 11% of Compensation. If a Non-Represented Current Member does not elect to participate in either the "Year 2000 pick up part" or the "Year 2001 pick up part" of the DC part, then the irrevocable 3% election initially made shall continue and the county shall continue to contribute 9% of Compensation for each such Non-Represented Current Member. The irrevocable election and the County's Contribution for Represented members shall be determined by their respective collective bargaining agreement. (4) Nothing contained herein shall authorize or grant a Member the option of choosing to receive the contributed amounts of the "pick up part" directly instead of having them paid by the County to the DC part of the Retirement System. Notwithstanding anything contained herein to the contrary, if a Member irrevocably elects to participate in the "pick up part" of the DC part, the amounts identified as a member Contribution shall be paid by the County to this System and not paid to the Member. Nor shall anything contained herein authorize such electing Member to attempt to make contributions to the System that qualify as a "pick up" contribution. Non-picked up Member. The Allocation to the Provisional Account of each Non-Represented Member who elected to participate in the DC part of the Retirement System in accordance with Section 35 and who did not irrevocably elect to participate in the "pick up part" of the DC part shall be 6% of such Member's Compensation for the Plan Year. Such non- electing member can contribute up to 10% of Compensation in accordance with Section 27. If a member elects to make both a Pick-up Contribution and a Non-pick up Contribution, the Non-pick up contribution shall be limited to 10% of Section 415 Compensation. BE IT FURTHER RESOLVED that Section 3(p) shall be amended from: (p) Entry Date for the DC part means the date six months after a Member incurs his first hour of compensated employment for the County. To provide the following: Entry Date for the DC part means for Employees hired before December 1, 1999, the date six (6) months after a Member incurs his first hour of compensated employment for the County. Notwithstanding anything contained herein to the contrary, effective for Employees hired after November 30, 1999 or those who participate in the DB part of the Retirement System and have not elected to become part of the DC part before December 1, 1999 but subsequently elect into the DC part, shall be the date the Member incurs his first hour of compensated employment for the County or elects to participate in the DC part of the Retirement System. BE IT FURTHER RESOLVED that Section 48 shall be amended from: Investment Options (Directed Investment) (3) (5) ()) 4 gar Section 48. Until a Member of the DC part is at least 40% vested, the Retirement Commission shall control the investment of the Participant's County Contribution Account. Once a Member is at least 40% vested, he shall have the flexibility to designate how his County Contribution Account shall be invested. The Retirement Commission shall determine which investment funds shall be available. The Retirement Commission shall select at least four such investment funds. Each member who is at least 40% vested shall advise the Retirement Commission how he wants his County Contribution Account invested. If a Member who is at least 40% vested fails to notify the Retirement Commission, it shall be presumed that he has elected that his County Contribution Account be invested at the direction of the Retirement Commission. If a Member wishes to utilize more than one fund, he shall notify the Retirement Commission of the percentage of his County contribution Account to be invested in each fund, and, except as provided in the last paragraph of this Section, such percentage must either be in exact multiples determined by the third party administrator maintaining the records of each Member's accounts. A Member of the DC part who is at least 40% vested may change his election of investment funds, provided that all Members who are at least 40% vested are treated uniformly. A Member of the DC part who transferred the present value of the Lump Sum Actuarial Equivalent of his Accrued Benefit to the DC part pursuant to Section 35 shall control the choice of investments for his Transferred Account within the choices made available by the retirement Commission regardless of his vested percentage in the County Contributions to the DC part. The Retirement Commission shall adopt such rules and procedures as it deems available as to al matters relating to the selection and use of the investment funds. If there is any inconsistency between such rules and any provisions above, the above provisions shall be disregarded. If a Member who is at least 40% vested desires, he may direct that County Contributions be invested in one fund and his Member contributions and Transferred Account be invested in another fund or funds. To provide the following: Investment Options (Directed Investment). Section 48. Effective January 1, 2000, each Member of the DC part shall designate how his County Contribution Account shall be invested. The Retirement Commission shall determine which investment funds shall be available. The Retirement Commission shall select at least four such investment funds. Each Member shall advise the Retirement Commission how he wants his County Contribution Account invested. If a Member fails to notify the Retirement Commission, it shall be presumed that he has elected that his County Contribution Account be 5 invested at the direction of the Retirement Commission. If a Member wishes to utilize more than one fund, he shall notify the Retirement Commission of the percentage of his County Contribution Account to be invested in each fund, and, except as provided in the last paragraph of this Section, such percentage must either be in exact multiples of 1% or whole dollar amounts or such other multiples determined by the third party administrator maintaining the records of each Member's Accounts. A Member of the DC part may change his election of investment funds, provided that all members are treated uniformly. A member of the DB part who transferred the present value of the Lump Sum Actuarial Equivalent of his Accrued Benefit to the DC part pursuant to Section 35 shall control the choice of investments of his Transferred Account within the choices made available by the Retirement Commission. The Retirement Commission shall adopt such rules and procedures as it deems advisable as to all matters relating to the selection an use of the investment funds. If there is any inconsistency between such rules and any provisions above, the above provisions shall be disregarded. A Member may direct that County Contributions be invested in one fund and his Member contributions and Transferred Account be invested in another fund or funds. BE IT FURTHER RESOLVED that Section 57(b)(7) be amended to read as follows: "Application for Loan: The member must give the retirement system adequate written notice as determined by the retirement commission of the amount and desired time for receiving a loan. No more than (5) loans may be made by the retirement commission to a member in any calendar year. No loan shall be approved if an existing loan from the retirement system to the member is in default to any extent." BE IT FURTHER RESOLVED that Section 18 be amended as follows: (a) The chairperson of the Board of County Commissioners or designee by virtue of that office. (b) The chairperson of the County Finance Committee or designee by virtue of that office. BE IT FURTHER RESOLVED that the Secretary of the Retirement Commission is authorized to have proper application made to the Treasury Department of the United States to obtain formal approval of the said Plan in accord with applicable provisions of the Internal Revenue Code, and to employ competent counsel in the prosecution of such application, and to do such other acts as shall be necessary hereunder to put the said Plan in operation; and 6 Resolution #99255 September 23, 1999 Moved by Law supported by Patterson the resolution be adopted. AYES: McPherson, Melton, Millard, Moffitt, Obrecht, Palmer, Patterson, Schmid, Sever, Suarez, Taub, Amos, Appel, Causey-Mitchell, Colasanti, Coleman, Devine, Dingeldey, Douglas, Galloway, Garfield, Gregory, Jensen, Law, McCulloch. (25) NAYS: None. (D) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on September 23, 1999 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 23d day,of September, 1999. G7 William Caddell, County Clerk