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The city is desirous of providing tax deferment for certain contributions made to the firefighter's retirement system in accordance with relevant provisions of the Internal Revenue Code. In order to receive qualified status of the plan by the Internal Revenue Service, certain modifications are necessary to the existing plan. In accordance therewith the following amendments to the plan are made effective:

(1) Reversion of funds. Section 20(d) of Ordinance No. 836, effective date January 1, 1958, is repealed. No monies held in the retirement fund as created by this article shall revert to the city until the satisfaction of all liability of the retirement fund occurs and the plan terminates in accordance with state law. The city firefighter's retirement system adopts and ratifies the provisions of C.R.S. § 31-30-503, relating to the source of funds. No funds collected pursuant to this statute shall become the property of or come under the control of the City as the employer within the meaning of the Internal Revenue Code during the operation of the plan.

(2) Distribution of benefits. In any event, notwithstanding any provision of this or any other section of the retirement system to the contrary, pursuant to code section 401(a)(9), payment of benefits shall commence not later than the later of April 1 of the calendar year following the calendar year in which the member attains age 70½, or terminates employment.

(3) Annual benefit and contribution limits. The plan incorporates by reference the requirements of code section 415 and final regulations interpreting code section 415, as applicable to this governmental retirement plan. The cost-of-living increase of Code section 415(d) shall continue to apply to increase the dollar benefit limit of code section 415(b) after the participant's severance from employment. The limitation on contributions of code section 415(c) shall apply to participant contributions that are made to the DROP account, (as described in section 102-208(c)(2)(iii)) and also applies to employer contributions that are made to the DROP account (although section 102-208(c)(2) makes this limitation on employer contributions irrelevant because it prohibits employer contributions from being used to fund the DROP account). The limitation year is the calendar year. Solely for purposes of applying code section 415(c) limits, "compensation" is defined as wages within the meaning of code section 3401(A), plus amounts that would be included in wages but for an election under code section 125(a), 132(f)(3), 402(e)(3), 402(h)(1)(B), 402(k) OR 457(b), all as described in Treas. Reg. § 1.415(c)-2.

(4) Prohibition of participating in more than one qualified pension plan during employment. An active member of the firefighter's retirement system shall not participate in any pension plan within the city other than that described in this article.

(5) Congressional/Internal Revenue Service/Treasury action. If any portions of code section 415 are deleted or delayed by Congress, the Internal Revenue Service or Treasury, only the pertinent portions of code section 415 shall apply.

(6) Direct rollover. For eligible rollover distributions a distributee may elect, at the time and in the manner prescribed by the board, to have any portion of the distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. For purposes of applying this subsection, the following definitions shall apply:

a. Eligible retirement plan. An eligible retirement plan is an individual retirement account described in section 408(a) of the code, an individual retirement annuity described in section 408(b) of the code, an annuity described in section 430(a) of the code, or a qualified trust described in section 401(a) of the code, that accepts the distributee's eligible rollover distribution. Effective January 1, 2002, an eligible retirement plan shall also mean an annuity contract described in code section 403(b) and an eligible plan under code section 457(b) which is maintained by a state, political subdivision of a state, or agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in code section 414(p). Effective January 1, 2008, an eligible retirement plan shall also mean a Roth IRA described in section 408A(b) of the code, subject to any applicable limits described in section 408A(c) of the code.

b. Distributee. A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse who is the alternate payee under a qualified domestic relations order, as defined in section 414(p) of the code, are distributees with regard to the interest of the spouse or former spouse.

c. Direct rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.

d. Eligible rollover distribution. Any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: Any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under code section 401(a)(9); and the portion of any distribution that is not includible in gross income. For distributions made after December 31, 2007, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in section 408(a) or (b) of the code, or in a direct trustee-to-trustee transfer to a qualified trust described in section 401(a) of the code which is exempt from tax under section 501(a) of the code or to an annuity contract described in section 403(b) of the code, provided such trust or contract provides for separate accounting for amounts so transferred (and earnings thereon), including separate accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.

(7) Distribution to IRA of nonspouse beneficiary. A participant's non-spouse beneficiary may elect to have any portion of an eligible plan distribution paid in a direct trustee-to-trustee transfer to an individual retirement account or annuity described in section 402(c)(8)(B)(i) or (ii) of the code that is established to receive the plan distribution on behalf of the beneficiary. For purposes of this section 102-207(7), a trust maintained for the benefit of one or more designated beneficiaries may be the beneficiary to the extent provided in rules prescribed by the secretary of treasury. If the participant dies after the participant's required beginning date as defined in section 102-207(8), the required minimum distribution in the year of death may not be transferred according to this section 102-207(7). The requirements of code section 402(c)(11) apply to distributions under this section 102-207(7).

(8) Required distributions. Effective January 1, 2002, distributions under this plan shall be made in accordance with the requirements of regulations under code section 401(a)(9) as applicable to governmental plans, including the minimum incidental death benefit requirements and the required beginning date rule. The required beginning date rule is that distribution of a participant's benefit shall begin no later than the April 1 following the later of the calendar year in which the participant attains age 70½ or terminates employment with the City. (Code 1979, § 15-139; Ord. No. 2015-29, § 1, 8-10-2015; Ord. No. 2011-48, § 2, 1-9-2012; Ord. No. 2008-77, §§ 1—3, 1-12-2009; Ord. No. 2003-15, § 2, 4-28-2003; Ord. No. 2001-68, § 4, 11-19-2001; Ord. No. 95-101, § 4, 12-11-1995)