HomeMy WebLinkAbout1999-12-30 Min - Board SPECIAL MEETING
December 30, 1999
In accordance with District Code Section 2.08.010 the TDPUD minutes are action only
minutes. All Board meetings are recorded on audio tapes which are preserved
Perpetually and made available for listening to any interested party upon their request
The special meeting of the Board of Directors of the Truckee Donner Publics Utility District was
called to order at approximately 1:00 PM in the TDPUD Board Room by President Hemig
ROLL CALL: Directors Ron Hemig, Bob Jones, James Maass and Pat Sutton were present.
Director Joe Aguera was absent.
EMPLOYEES PRESENT: Mary Chapman, Alan Harry, Steve Hollabaugh and Peter Holzmeister
were present.
CONSULTANTS PRESENT: No consultants were present.
OTHERS PRESENT: There were no others present in the audience.
CONSIDERATION OF A RESOLUTION ADOPTING AN AMENDED DEFINED BENEFIT
PENSION PLAN TO COMPLY WITH THE REQUIREMENTS OF THE TAX REFORM ACT OF
1986; OTHER FEDERAL LAWS WHICH HAVE BEEN PASSED SINCE 1986; ALL CURRENT
IRS AND DEPARTTMENT OF LABOR REGULATIONS AND, FURTHER, TO INCORPORATE
THE PRIOR EIGHT AMENDMENTS ADOPTED BY THE BOARD
In order to remain in compliance with federal law, the defined benefit pension plan, which
# provides for the retirement of the District's hourly employees, needs to be amended.
A letter prepared by Wayne Richardson Company, who administers the pension plan, provides
a comparison of the elective provisions of the District's defined benefit plan document, as
amended, and the new plan document which incorporates all changes in federal law which have
occurred since 1983 and all amendments made to the plan through 1998. A copy has been
attached for reference. The Manager has worked with Ron Richardson and the Union; the Union
and employees are in agreement that this revised plan should be adopted.
Motion was made and seconded that the Board adopt Resolution 9921 approving the District's
amended defined benefit pension plan. ROLL CALL: Aguera, absent; all other Directors, aye.
SO RESOLVED.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 1:13 PM.
TRUC DONfOR PUBLIX� UJfILITY DISTRICT
JMon mid g, Presi nt
Prepared by G
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Susan M. Craig, Deputy District Clerk
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12/30/99 Pagel
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WAYNE RICHARDSON COMPANY, INC.
Administrators & Consultants -- —_
May 12, 1998
Peter L. Holameister, General Manager
Truckee Donner Public Utility District
P 0 Box 309
Truckee CA 96160
Subject: Comparison of Old and New Plan Documents
Dear Peter,
Following is a comparison of the elective provisions of the District's defined benefit plan
document adopted August 15, 1983, as amended, and the new plan document which
incorporates all changes in federal law which have occurred since 1983, and all
amendments made to the plan through 1998.
Copies of the 1983 plan documents along with all amendments are enclosed, as is the
new document which is ready for adoption by the Board of Directors.
Eligibility: One Year of Service and Age 21 (no change)
1983 document: Service: Section C, paragraph 2, page 2 of Joinder Agreement
Age: Reduced to age 21, January 1, 1985 by the Fourth Amendment
1998 document: Service: Article 11, paragraph A, page 12
Age: Article I, paragraph R, page 3
Note.: Employees receiving Employer contributions to ICMA
deferred compensation plan excluded from participation
under Article 1, paragraph R, page 3
Entry Dates: January 1 and July 1 (no change)
1983 document: Section C, paragraph 3, page 2 of Joinder Agreement
1998 document: Article I, paragraph W, page 4
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2277 Watt Avenue, Suite 101 - Sacramento CA 95825 (9161 493-990? Fw nst^. 017nn
Election Not To Participate: Participants were not allowed to waive participation in the
old document. This was reversed in the ,Sixth Amendment , and accordingly, was not
addressed in the proposed document, except for the above references to participation in
_.. the ICMA deferred compensation plan.
1983 document: Section O, paragraph 2, page 6 of Joinder Agreement
1998 document: Article I, paragraph R, page 3
Compensation: Total compensation per form W-2 (no change)
1983 document: Section D, paragraph 1, page 2 of Joinder Agreement
1998 document: Article I, paragraph J, page 2
Normal Retirement Date: Age 65, or the 10th anniversary of the date participation
commenced, whichever is later, but not later than age 70. A uniform retirement age of 65
recommended. No current employees are impacted by this change.
1983 document: Section E, page 2 of Joinder Agreement
1998 document: Article 1, paragraph AF, page 7
Early Retirement Date: Age 55, or following 10 years of service, if later(no change)
1983 document: Section F, page 3 of Joinder Agreement
1998 document: Article I, paragraph N, page 3
Vesting: Originally 10% per year of service; modified by Minute Order 89-82, as
required by TRA '86, to 10% for each of the first 4 years of service, 5 years 60%, 6 years
80%, and 7 years 100%.
1983 document: Section G, paragraph 2, page 3 of Joinder Agreement
1998 document: Article V, paragraph A, subparagraph 3, page 39
Service for Vesting: All of a Participant's service shall be counted (no change)
1983 document: Section G, paragraph 4, page 3 of Joinder Agreement
1998 document: Article V, paragraph A, subparagraph 5, page 39
Benefit Accrual Computational Period: 1,000 hours of service during each 12 month
period. Years of service for accrual of benefits shall be based on years of service
completed while an eligible employee. (no change)
1983 document: Section K, paragraphs 1 and 2, page 5 of Joinder Agreement
1998 document: Article I, paragraph AT, page 11
F
Death Benefit: Originally the survivor benefit in the event of a participant's death was
the value of life insurance policies equal to 50 times the Normal Retirement Benefit. Life
insurance benefits were discontinued under the plan, so that the survivor benefit in the
event of a participant's death is the present value of the participant's accrued benefit.
1983 document: Section L, subparagraph e, page 5 of Joinder Agreement
1998 document: Article III, paragraph I, page 16
Disability Benefit: Full vesting in the event of disability (no change)
1983 document: Section M, subparagraph c, page 6 of Joinder Agreement
1998 document: Article III, paragraph J, page 16
Normal Retirement Benefit: 40% of compensation, reduced for less than 20 years of
service at normal retirement date, plus .5% for each year of service in excess of 20 years
at normal retirement date as modified by the Fifth Amendment.
1983 document: Section I, paragraph 1 page 4 of Joinder Agreement; modified by
Fifth Amendment
1998 document: Article III, paragraph D, subparagraph 1, page 14
Average Monthly Compensation for Benefit Purposes: Highest three consecutive
years (no change)
1983 document: Section 1, paragraph 2, page 4 of Joinder Agreement
1998 document: Article 1, paragraph F, page 2
Normal Annuity Form: Life Annuity (no change)
1983 document: Section 1, paragraph 3, page 4 of Joinder Agreement
1998 document: Article I, paragraph AD, page 7
Actuarial Equivalent (Early Retirement Benefit): The participant's accrued benefit,
reduced by 1/15 for each of the first five years Early Retirement precedes the Normal
Retirement Date, reduced by 1/30 for each of the next five years, and actuarially
thereafter (no change)
1983 document: Section J, page 5 of Joinder Agreement; and
Section N, page 6 of Joinder Agreement
1998 document: Article III, paragraph G, page 15
Actuarial Equivalent (Lump Sum Benefits): Initially, a lump sum equivalent could not
be more than if determined by 7% interest and '71 Group Annuity Mortality (GAM)
[1983 document: Section N, page 6 of Joinder Agreement].
This was modified by the Fifth Amendment (Resolution 8922) to provide that a lump sum
equivalent cannot result in a higher benefit than if determined by 7% interest and '71
Group Annuity Mortality, and that the interest rate used cannot be higher than that which
would be used by the Pension Benefit Guaranty Corporation for determining the present
value of an immediate distribution at plan termination, which rate shall be the rate in
effect at the beginning of the calendar year in which the distribution is to be made.
This was further adjusted by the Seventh Amendment to include the following use of the
following mortality tables: post-retirement: UP84 unisex mortality; and pre-retirement:
Table 1 of Appendix A to Part 2619 of the Pension Benefit Guaranty Corporation
regulations (UP84 unisex mortality)
1998 document: Article I, paragraph B, page 7
Article III, paragraph N, subparagraph 5, page 21
Participant Loans: Loans were not allowed under the original documents. This was
recently modified by the Eighth Amendment to allow loans for the sole purpose of paying
alternate payees under a Qualified Domestic Relations Order. This provision has been
written into the proposed documents.
1983 document: Section O, paragraph 5, page 7 of Joinder Agreement
1998 document: Article VI, page 41
Payment to Alternate Payees under a Qualified Domestic Relations Order: The
original documents had no provisions for payment under a QDRO. Provisions for
payment to an alternate payees under a QDRO were added in the Fourth Amendment;
however, no payment was allowed prior to the participant's retirement, or termination of
employment. This was recently modified by the Figbth Amendment to allow early
payment under a QDRO, and has been written into the proposed documents.
1983 document: Articles 7.1 and 12.5 as amended (Fourth Amendment)
1998 document: Article III, paragraph R, subparagraph 6, page 30
All other changes in wording between the two documents are due to provisions required
by the Internal Revenue Code, and regulations issued by the IRS for all trusts exempt
from tax under Section 401(a) of the Internal Revenue Code.
A Model Amendment incorporating changes required by the General Agreement on
Tariffs and Trades (1994), the Uniform Services Employment and Reemployment Rights
Act of 1994, and the Small Business Job Protection Act of 1996, is included and
referenced in the sample resolution for adoption of the proposed plan document.
Please call me if you have any questions after you have reviewed this comparison.
With warm personal regards,
Ronald B. Richardson
President
Encl.
MODEL AMENDNIENT FOR DEFINED BENEFIT PLANS
REFLECTING CHANGES BROUGHT ABOUT BY
THE GENERAL AGREEMENT ON TARIFFS AND TRADE,
. THE UNIFORM SERVICES EMPLOYMENT AND
REEMPLOYMENT RIGHTS ACT OF 1994,
AND
THE SMALL BUSYNESS JOB PROTECTION ACT OF 1996
Since IRS approval of the underlying plan document, several pieces of legislation have been
enacted which require amendment of plan terms. This amendment is mandatory for plans which
are being terminated.
AMENDMENT PROVISIONS FOR GATT
1. Article IV shall be modified as follows: "Defined Contribution Dollar Limitation" means
$30,000, as adjusted by the Secretary of the Treasury for increases in the cost-of-living.
Such increases will be in multiples of five thousand dollars ($5,000) or, if greater, 25% of
the Defined Benefit Dollar Limitation in effect for the Plan Year;
2. Article IV shall be modified as follows: The last paragraph of subparagraph l(a) of
paragraph A shall be deleted and replaced with the following: If the Annual Benefit begins
before the Participant attains age 62, the Defined Benefit Dollar Limitation shall be
adjusted so that it is the
The above amendment provisions are effective as of the first day of the 1995 plan year.
AMENDMENT PROVISIONS FOR USERRA
3. Article III shall be modified as follows: Notwithstanding any provision of this Article to
the contrary, Participants will accrue a Normal Retirement Benefit with respect to periods
of qualified military service as provided in Code Sec. 414(u).
4. Article V shall be modified as follows: Notwithstanding any provision of this Article to
the contrary, Participants will be credited with vesting service with respect to periods of
qualified military service as provided in Code Sec. 414(u).
5. Article VI shall be modified as follows: Notwithstanding any provision of this Article to
the contrary, loan payments, if any, shall be suspended under this plan with respect to
periods of qualified military service as permitted under Code Sec. 414(u).
The above amendment provisions are effective as of the time when first administratively
applied, but in no event after October 31, 1997.
f
AMENDMENT PROVISIONS FOR SBJPA
6. Article I: The definition of"Leased Employee" shall be modified as follows:
The words "of a type historically performed for the Employer by employees in the
Employer's field of business" shall be deleted and replaced by "under the direction and
control of the Employer".
7, Article 1: The definition of"Compensation" shall be modified as follows: Paragraphs 6
and 7 relating to aggregation of family members, and phrases reading "(after aggregation
of family members)" shall be deleted.
8. Article III shall be modified as follows: Notwithstanding any provision of this Article to
the contrary, for plan years beginning in 1997 and later, employees who are not 5%
owners, who attained age 70-1/2 in 1997 or will attain it in later years, and who are still
employed by the Employer, may either receive their distribution commencing no later than
April 1st of the calendar year following the calendar year in which the Participant attains
age 70-1/2, or may defer commencement of benefit payment to the earlier of the April 1st
following the calendar year during which the Participant either becomes a 5% owner or
separates from service with the Employer.
The above amendment provisions are effective as of the beginning of the 1997 plan year
In Witness Whereof, Truckee-Donner Public Utility District has caused this
amendment to be executed by its authorized officer. Dated this day of
19
AUTHORIZED OFFICER
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