City of Gainesville - File #: 110370.

• File #: 110370.
• Version: 1
• Name: AMENDMENT TO THE CITY OF GAINESVILLE GENERAL EMPLOYEES PENSION PLAN AND THE CITY OF GAINESVILLE EMPLOYEES' DISABILITY PLAN (B)
• Type: Ordinance
• Status: Adopted
• File created: 11/3/2011
• In control: City Attorney
• Final action: 11/17/2011
• Title: AMENDMENT TO THE CITY OF GAINESVILLE GENERAL EMPLOYEES PENSION PLAN AND THE CITY OF GAINESVILLE EMPLOYEES' DISABILITY PLAN (B) Ordinance No. 110370 An ordinance of the City of Gainesville, Florida, amending Chapter 2, Article VII of the Code of Ordinances of the City of Gainesville, relating to the City of Gainesville General Employees Pension Plan and the City of Gainesville Employees' Disability Plan; amending Sections 2-533 and 2-549 of each plan to expressly provide that the corpus and income of the plan are to be used for the exclusive benefit of the plan participants and their beneficiaries; providing directions to the codifier; providing a severability clause; providing a repealing clause; and providing a retroactive effective date. (NB)

Date	Ver.	Action By	Action	Result
11/17/2011	1	City Commission	Adopted on Final Reading (Ordinance)	Pass
11/3/2011	1	City Commission	Adopted on First Reading (Ordinance)	Pass
10/20/2011	0	City Commission	Approved as Recommended	Pass

title
AMENDMENT TO THE CITY OF GAINESVILLE GENERAL EMPLOYEES PENSION PLAN AND THE CITY OF GAINESVILLE EMPLOYEES' DISABILITY PLAN (B)

Ordinance No. 110370
An ordinance of the City of Gainesville, Florida, amending Chapter 2, Article VII of the Code of Ordinances of the City of Gainesville, relating to the City of Gainesville General Employees Pension Plan and the City of Gainesville Employees' Disability Plan; amending Sections 2-533 and 2-549 of each plan to expressly provide that the corpus and income of the plan are to be used for the exclusive benefit of the plan participants and their beneficiaries; providing directions to the codifier; providing a severability clause; providing a repealing clause; and providing a retroactive effective date. (NB)

recommendation
The City Commission adopt the proposed ordinance.

explanation
The City Commission at its meeting on October 20, 2011, authorized the City Attorney to prepare and the Clerk of the Commission to advertise an ordinance amending the General Employees' Pension Plan and Disability Pension Plan to add the exclusive benefit rule language required by IRS Revenue Ruling 2011-1.

In order for the City's pension plans to continue to invest in group trusts and not affect the tax status of the group trusts they invest in, IRS Revenue Ruling 2011-1 requires governmental pension plans to expressly provide in their governing documents "that it is impossible for the corpus or income of the group trust retiree benefit plan to be used for, or diverted to, purposes other than the exclusive benefit of the plan participants and their beneficiaries." This language is sometimes referred to as the "exclusive benefit rule."

While the City of Gainesville Employees' Pension Plan currently contains similar language to the language referenced above in Section 2-533(a)(1) of the Gainesville Code of Ordinances ("The City Commission shall have the right, at any time, to amend any or all of the provisions of the...