10-291CounciI �'ile # 10-291
Green Sheet # 3101036
RESC?LUTION �
�iNT PAUL, MINNESOTA
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Presented by
AiVfEPiDING THE PE�'SIO\` PLAi� OF
THE AOUSING AND REDEVELOPMEnT AUTHORTTY
OF THE CITY OF SAInT PAtiL, ML^`NESOTA
WHEREAS, the Public Housing Agency of the City of Saint Paul and the City of Saint Pau1, Mmnesota (the "Employers°)
cur�enfly maintain the Pension Plan of the Housing and Redevelopment Authority of the City of Samt Paul, Minnesota ([he
"Plan"); and •
W HEREA5, ihe Employers have reserved the nght to amend the Plan nnder Section 10 01 of the Ptan; and
R�HEREAS, the Employers wish to modify rhe Plan to comply with certain changes in the law and to make oiher rcuscellaneous
changes to the Plan; and
WHEREAS, the Employers wish to modify the Ptan to mcorporaie the ehanges made or xequired by the Pension Pmtection Act
of2006, aud
WHF,REAS, the Employars deem �t adv�sabYe, in order to inaintain the Plan`s tax-qualified status under the Inteinal Revenue
Code, to approve tlus Amendment ro rhe Pian; and
NOW,IHEREPORE BE IT RESOLVED, by the Saint Paul City Council, as follows:
The attaclied Amendment Yo the Pension Pian of the Housmg and Redevelopment Authority of the C�ty of
Saint Paul, Mmnesota is heieby approved
Bosffom
Hams
✓
Adopted by Council: Date
Requested by Department of:
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Bw.. Y_ _
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AppTOVed by t fi� F' a�exv�c �
By:,�
Approved by �A�te�� , ��f/
By:
d/D '� —
Appioved }�y Mayor foc . bmission to Council
Adoption Certified by uncil Secretary g �/
By. �
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Approved b oc: Date � Z.�O Zpl�
By:
10-29
Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
� DepartmeirtlOffice/Councii: ,' Date Initiated: �
Mo-"'aY°rs°�Oe osMAR2o,o ! Green Sheet NO: 3101036
Contact Person & Phone: , , i Department Sent To Persan tr,te�:
�
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Action Requ¢sted: --
That the Saint Paul City Council approve of the Council Resolution amending the Pension Plan of the Housing and Redevelopment
Authority of the Ciry of Saint Paui. The employers wish to modify the Plan to incorporate the cha�ges made or requited by the
Pension Protection Act of 2006 and the employers deem it advisable in order [o maintain the Plan's tax-qualified status under
Internal Revenue Code
, Recommendations: Approve (A) or Reject (R)
' Planning Gommission
CIB Committee
Crvil Service Commission
Personal Service Contracts Must Answer the Following Questions:
7. Has this persoNfirm ever worked under a contract for this tlepartmenf?
Yes No
2. Has tbis person/firm ever been a city empbyee?
Yes No
3 Dces this person/firm possess a skill not normally possessed hy any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet.
, _ _ _ _ _ __ _ _ __ _.____ �
imtiat7ng Problem, lssues, Opportunity (Who, Wbal, When, Where, Why);
' Ativantages If Approved:
i
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�, DisativantagesHApproved:
Disadvantages If Not Approved:
Total Amount of
Transaction:
Funding Source:
Financlal Information:
{Explai�)
March 5, 2010 8:28 AM
Cost/Revenue Budgetetl:
Activiry Number:
i
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Page 1
10-291
AMENDMEN7 TO COMPLY �NfTFi
THE PENS[ON PROTECT(ON ACT OF 2006
This amendment of the ?lan is adoptetl to comp'y with tfie requirements of the Pension
Pso;eetion Act of ZQ06 and the technical co;rections ic the Pens�on Protection Acl oF 204fi in
accordance with fhe Wosker, Retiree, and Emp�oyzr Recovery Act of 2DD8 ThiS amendment is to
be construed in accordance �dith such Saws 7his amendment shail continue to apply fo ihe Pian,
including ths Plan as tater amended, unti{ such provlsions are integrated into the Plan or ihe
provisions of this amendment are specificaVfy amended The efteckive detes siated in the
amendmeni shafl be the later of the siaied date or tfie effective date ot the Pian
?his amendment shall supersede any previous amendment and ihe provisions of the Plan to tfie
extent those provisions are ioconsistertt with the provisions of this amendment-
PENSION PL�AN OF 7HE HOC rr OF SAItJT PAUL, NiN���T AUTHOR(TY OF THE
The Pian named above gives the undecsigned the right to amend it at any hme Accordmg to that
rigM, the Pfan ls amended as foflows:
E$ective as of January 1, 2007, by adding to the DEF(NITIONS SECTION of Artic4e 1, [he
toAowing definttions:
Designafed 8eneflc{ary means the individual who is designated by the Participant (or the
Padicipant's surviving spousa) as the Beneficiary of the Pa�ticipanPs interest under the Pian and
who is the designated beneficiary under Code Section 401(a)(9) and secfion 4 401(a)(9}4 of the
regulations
Effective as of danuary 1, 2008, by striking the definition af Eiigible Retirement Plan in the
DEF1Ni'fiOtSS SECTION of Arlicle � aad substitufing in lieu thereof the following:
Eifgible Refirement Ptan means an etigibie pfan undes Code Seckion 457(b) which is mainfaioed
by a state, pofiticai subdivision of a staie, or any agency or instrumentality of a state ar po(iNcal
subd"+vision of a state and which agrees io separately account for amounis transferred into sucb
plan fcom this P4an, an individuai ratirement account described 'm Code Section 408(a), an
individual retirement annuity desccibed in Code Section 408(b), for taxable years beginning on or
after January 1, 2066, an Sndlvidual retirement p(an described in Code Section 4D8A(b) subjed to
any limitations desedbed in Code Section 406A{c}, an anoufty plan descrtbed in Cpde Section
A03(a), an annuity contract described in Code Section 403(b), os a qua4ifted plan described in
Code Secfion 407 (a), tfiat accepts fhe Dlsiribufee`s Eiigibie Roitover Distribution The deFnition
of Eligible Ratiremenf Plan shail also appty in the case af a distribution to a surviving spouse, or
to a spouse or fasmer spouss who is an Alternate Payee under a qualified domestic relations
order, as defined in Code Seciian 414(p}
Effective for distnbutions mede ln taxabie years beginning on or after January t, 2007, by striking
the definttion of Elrgible Roliover Distribution in the DEFYNtTf6N5 SECT{ON of Article 1 end
subsfifutiRg in tieu thereof the foliowing:
EiigibYe RoiYover Distribution means any disUibution of al( or any portion of fhe balance to the
credit of the Distribufee, except thaf an Etigible Rollover Ristribution does not include: (i) any
distribution that is one of a series of substantially equai periodic payments {not less frequently than
annuaily) made fo� the life (vr life expectancy) of the Disfripufee or the joint tives (or joint lite
expectancies) of the QistritruEee and the Disfributee's Designated Seneficiary, or for a specisied
period ot Een years or more; (li) any dis{ri6ution to the exfent such distnbuYion is reqvired nnder
Code Sectron 40i(a}{9); (iii) aoy hardship distribution; (iv) the portion of any other dishibutton{s) that
is not incfudible in gross income (dstermined without regard to the exclusion Eor net unrealized
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10-291
appreciation with respetl to employer securii+es); znd ;v) any other distrihution(sJ that is reasonabiy
expecled to to!al tess than 5200 during a year
A portion of a distribuiion shall no[ fiaii tc be an Etigibte RoL'over DistrSouiion msrely because fhe
po �ion consisis of after-tax employee contributions lhat are nof inctudibie in gross mcome
However, such portion mzy be transferred only to (i) an fndividuai retirzmert account or inflividuaM1
retirecnant annuiry described in Code Section 408{a) or (b); (ii) for ta�bte years beginning on or
affer January t, 2007, a qua��ed plan {defined conirbution or defined benefd) ar an annu+ty
cor,tract descrtbed in Gode SacGon 403(bj Ifiat agrees to separately account for amounts so
transferred incWding separately accounting foc the portion of such dislribution which is includble in
gross income and ihe portion of such distribution vthich is not so inetudible; or (iiij for taxable years
beginning on or after January 7, 2068, an individua{ reSi�ement plan described in Code Section
4DSA(6) subject to any timitations described in Code Sedion 468A(c} {haf agrees to separately
account tor amoun(s so iransfe�red, induding separatefy aceounting fot the poriion of s�sch
distribuFion tvhich is indudible in gross income and lhe portion of such distribulion which is no1 so
includible
if Ro4lovec Corttibutions are allowed, effective as of January 1, 2007, by add+ng to the
ftOtLOVER CONTRIBl1TlONS SECTION of Atticie III as a Roltover Contribuhon accepted by
the Pfan in taxable years beginning on or aRer January t, 2007, the direct roliover of after-tax
empioyae contribulions fiom an annuvty contract described in Gode 3ection 4�3(b)
if the Plan includes an EXCESS AMOUNTS SECTlON in Article q{, etfective 4or P{an Year
beginning on or after January t, 20�8 by modi[ying the EXCESS AMOUNTS SECTION af Article
I(i fo remove the calculafion of gap period income for purpo5es of Excess Rggrega4e
Contributions
tf the optionat focros of retirement benefit include survivorship life annuities with instailment reFUnd
and survivocship percentages of 5Q°fo, fi6 2/3 or 100°/a, effective for Plan Years beginning on or
aRer January 1, 20Q8, by adding a 75°!o sunivosshig percentage to the survivarship percentaqes
iistad in the OPTIONAL FORMS OF DIS7RIBUTION SECTtC�N nf Artic4e V4
EKective as of January 1, 2007, by adding to the end of the frcsi patagraph in ihe DIRECT
ROLLOVERS SECTIDN Ot Article X fhe fiollowing:
For distrbufions made afler December37, Z006 (or the eKecfive date above, if fater), a
Designated Beneficiary o# a Padicipant who is not the suroiving spouse of the Participant may
elect, at the time and in the manne� prescriCed by the Pian Administraf�r, �o have any podion of a
distribution, that woutd be an Etigible Ra4bver Oistribution if ihe Desig�ated Beneficiary were a
Distribufee, paid fn a 4irecf Rollaver to an indiv3dual re6rement p(an descrihed in Code Sectior,
442(c)(6)(8){i) or {ii) estahlished for ifie purposes of receiving the distribut+on an behalf of the
Designated Beneflciary If such Direcf RoYiover is made: {i} such Direct Rollover shaSl be treated
as an Eligibie Roilovef Distribuiion; (ii) the individuai retirement pfan shafi be treated as an
inherited individual retirement acwunt or intlividuat �eEirement annuly �within fhe meaning of
Code Section 408(d)(3)(C)); and (iii) Code Section 401(a)(9)(B) (other than clause ('ry) t�+ereo�
shap appty to such plan For this purpose, ceri8in frusfs sha)I be treated as a Designated
Bene@ciary as provided in Code Sectian 402(cj(11)(Bj
Effec4ive for P{an Ysars beginn"sng on or after danuary t, 2008, by striking the reference to Code
Seciion 412{c)(6} yn tha AtJ�ENDMENTS SECTION of Articte X artd reA�aei�g ii wifh Code Sedion
412(d)(2)
This amendment is made an inieg; ai p�rt of the aforesaid Plan and is controtNng over the terms of
said Plan wifh respect to the particular iiems addressed eupressty therein Ail other provisions of
the P�an remain unchanged and controliing
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10-291
Unless otherv�ise sfated on any page of this am=ndmenf, eGgibildy for benefits a�d the amount of
any benefds payabie to �r an behaif of an individua{ �vt�o is an Inactfve PaM1icfpant on the effective
date(s) staEed above, shail be determined zccording fo the psovis+ons oP the aforesaid Ptan as in
e�ecE on tne day before he became an inactive Participant
Signing this amendment, the undersigned, as plan sponsor, has made the decision to adopt thls
p[an amendme�f The undersigned is acting in reliance on their ovrn discretion and on the tegal
and taz edvice of fheir own advisors, and nof tfiaf of any member of the Principaf Financial Group
or any representakwe o4 a member company of tne Principal Financial Group
Signed this � day o( ,/_.�I U�f � H" �'' ,.�.�.L`
For the Employer
�
�y: ,�/� ,��;,,�/
^ ��/ar.Z
T�tie
Subtype 11Q276 3 6-1D089
1
City of Saint Paul
Interdeparttnental Memorandum
To: Margaret Kelly, OFS Director
From: Susan Melchionne, Budget Analyst
Subject: GS #3078656
Date: 3/8/10
The areached resolution approves amendments to the Pension Plan of the HRA. The modifications
incorporate the changes made or required by the Pension Protection Act of 2006, and are primarily
related to pension rollover procedures. Christine Chapman has also review the resolution and proposed
amendments and sees no problems with it.
OK to sign.
AA-ADA-EEO Employer