title
GENERAL EMPLOYEES PENSION PLAN AMENDMENT (B)
Ordinance No. 0-07-42
An ordinance of the City of Gainesville, Florida, amending the Code of Ordinances of the City of Gainesville, relating to The General Employees Pension Plan; amending section 2-526, Benefits, relating to maximum benefits and direct transfers of eligible rollover distributions; providing directions to the codifier; providing a severability clause; providing a repealing clause; and providing an immediate effective date.
recommendation
The City Commission adopt the proposed ordinance.
explanation
At its May 14, 2007 meeting, the City Commission authorized the City Attorney to draft and the Clerk of the Commission to advertise an ordinance amending the General Employees Pension Plan.
The recently adopted federal Pension Protection Act of 2006 made permanent some earlier ERISA/Internal Revenue Code provisions that affected the City's pension plans and imposed at least one new requirement. It is necessary to update plan provisions related to these ERISA/tax code qualification requirements. Changes generally involve eliminating prior restrictions and adding the ability of non-spouse beneficiaries to roll over certain distributions in the event of death of the member and avoid distribution being a taxable event. The changes are already being made as part of the amendment to the Police Officers and Firefighters Consolidated Pension Plan. There is no cost to the City associated with these changes and, as indicated above, potential benefits to the members.
Should this ordinance pass on first reading, second and final reading of the ordinance will be held on Monday, July 9, 2007.