Loading...
HomeMy WebLinkAbout~Master - Expenditure for Utility Retirement System Legal and Actuarial Services RESOLUTION NO. 02-125 RESOLUTION AUTHORIZING EXPENDITURE FOR UTILITY RETIREMENT SYSTEM LEGAL AND ACTUARIAL SERVICES FOR THE CITY OF AMES,IOWA WHEREAS, at the time that the City's Utility Retirement System was converted to a defined contribution plan in 1997,the City purchased annuity contracts with the Principal Finance Group to fund the retirement benefits for employees that were already retired; and, WHEREAS, in 2001, the Principal Group recommended that the company convert from a mutual holding company to a publicly traded stock company in a process referred to as demutualization; and, WHEREAS, When demutualization was finalized, the City of Ames, as the owner of the annuity contracts,received 17,507 shares of stock; and, WHEREAS,as the City of Ames cannot hold equities,the stock was sold and proceeds received in the amount of$361,860; and, WHEREAS,the Utility Retirement Advisory Board met to discuss the process for distributing those funds and has decided on several options to explore; and, WHEREAS, in undertaking this course of action, the Board realizes that a pension attorney and an actuary will need to be engaged to ensure any distribution is completed according to law so as not to affect the qualified status of the Plan; and, WHEREAS,the Utility Retirement Advisory Board recommended that the City Treasurer and Director of Finance explore these options at a cost not to exceed$10,000,with the cost to be deducted from the proceeds of the sale of stock. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the Director of Finance is hereby authorized to contact a pension attorney and actuary to explore the legality of the following options at a cost not to exceed$10,000: a. Distribute the funds to the active members at 9/30/97 using the original distribution formula. b. Distribute the funds to the active members at 9/30/97 using the original distribution formula, but exclude those who met age 55 and 30 years of service at 9/30/97 and were deemed to have been made whole at that time. C. Distribute the funds to members who retired under the defined benefit plan and had annuities purchased for them. ADOPTED THIS 26th day of February, 2002. 4rw��f .�-a& Diane R. Voss,City Clerk Ted Tedesco,Mayor Introduced by: Wirth Seconded by: Goodhue Voting aye: Goodhue,Hoffman, Quirmbach,Vegge,Wirth Voting nay: None Absent: Cross Resolution declared adopted and signed by the Mayor this 26th day of February,2002.