HomeMy WebLinkAbout~Master - Distribution of Principal Financial stock sale proceeds RESOLUTION NO. 03-181
RESOLUTION APPROVING RECOMMENDATION TO
DISTRIBUTE PRINCIPAL FINANCIAL STOCK SALE PROCEEDS
TO ACTIVE MEMBERS OF UTILITY RETIREMENT
AT SEPTEMBER 30, 1997,
FOR THE CITY OF AMES
WHEREAS, on October 22, 2002, the Council approved the Utility Retirement Advisory
Board's recommendation to distribute the proceeds ofthe Principal Financial stock to those members
in the Utility Retirement system as of September 30, 1997; and,
WHEREAS, the decision on how to make that distribution had not been determined at that
time; and,
WHEREAS,the Board looked at the following options: 1)distribute the money outside the
current plan, making the distribution taxable to the members; 2) distribute the money inside the
current plan,without getting a private letter ruling from the IRS,exposing the plan to a limited risk;
and,3)distribute the money by opening the defined benefit plan,bringing it into compliance for any
pension law changes since 1997, get a private letter ruling, and again close the plan; and,
WHEREAS, after analyzing the options, the Utility Retirement Advisory Board has
recommended the funds be distributed outside the plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the distribution of proceeds from the sale of Principal Financial stock outside the current plan
is hereby approved.
ADOPTED THIS 13`h day of May, 2003.
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Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Cross
Seconded by: Wirth
Voting aye: Cross, Goodhue, Hoffinan, Mahayni, Vegge, Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this l 3`t' of May, 2003.