Resolution 15108CITY OF ALAMEDA RESOLUTION NO. 15108
RESOLUTION AMENDING THE INTERNATIONAL ASSOCIATION
OF FIRE FIGHTERS (IAFF) SUPPLEMENTAL RETIREMENT AND
HEALTH PLAN (PLAN) AND TRUST AGREEMENT FOR IAFF
EMPLOYEES HIRED AFTER JUNE 7, 2011 TO INCLUDE ALAMEDA
FIRE CHIEFS ASSOCIATION (AFCA), ALAMEDA POLICE
OFFICER'S ASSOCIATION (APOA), AND ALAMEDA POLICE
MANAGEMENT ASSOCIATION (APMA) EMPLOYEES HIRED AFTER
JUNE 7, 2011 AS PROVIDED IN THE MEMORANDA OF
UNDERSTANDING (MOOS) BETWEEN THE CITY AND AFCA, THE
CITY AND APOA, AND THE CITY AND APMA APPROVED ON
APRIL 29, 2015
WHEREAS, the memoranda of understanding (MOU) regarding the terms and
conditions of employment of the employees of the City of Alameda (City) who are
members of the International Association Of Firefighters, Local 689 (IAFF) required the
City to adopt a supplemental retirement plan that allowed for the accrual of retiree
health benefits; and
WHEREAS, pursuant to terms of the IAFF MOU, the City Council approved and
the City adopted such a plan, titled the "City Of Alameda IAFF Supplemental Retirement
Plan" (Plan), and a retirement trust, pursuant to the "City Of Alameda IAFF
Supplemental Retirement Plan Trust Agreement" (Trust), that are intended to be a
qualified retirement plan and a qualified retirement trust under sections 401(a) and
501(a) of the Internal Revenue Code (Code); and
WHEREAS, pursuant to the Plan and the IAFF MOU, employees who are subject
to the IAFF MOU and are hired by the City after June 7, 2011 shall participate in the
Plan and must make contributions to the Plan equal to (i) 3% of regular base monthly
salary and (ii) upon termination of employment, the employee's unused vacation leave,
unused compensatory leave, and unused sick leave to the extent not converted to
service credit under CaIPERS; and
WHEREAS, pursuant to the Plan and the IAFF MOU, the City desired to "pick
up" the employee contributions to the Plan by the employees of the City who are
members of the IAFF as permitted by Code section 414(h)(2) such that the employee
contributions will be treated as employer contributions rather than employee
contributions for income tax purposes; and
WHEREAS, the City Council took formal action required to "pick up" the
employee contributions to the Plan by the employees of the City who are members of
the IAFF; and
WHEREAS, effective as of January 1, 2016, the IAFF MOU reduces the amount
of the contributions to the supplemental retirement plan by employees who are subject
to the IAFF MOU and are hired by the City after June 7, 2011 from 3% to 2% of regular
base monthly salary; and
WHEREAS, effective as of January 1, 2016, the MOUs regarding the terms and
conditions of employment of the employees of the City who are members of either (i)
the Alameda Police Officers Association (APOA), (ii) the Alameda Police Managers
Association (APMA), or (iii) the Alameda Fire Chiefs Association (AFCA) require the
City to adopt a supplemental retirement plan that allows for the accrual of retiree health
benefits; and
WHEREAS, effective as of January 1, 2016, the APOA MOU, the APMA MOU
and the AFCA MOU require employees who are subject to one of these MOUs and are
hired by the City after June 7, 2011 to participate in such a supplemental retirement
plan and to make contributions to such a supplemental retirement plan_ equal to (i) -2% of -
either regular base monthly salary or base salary and (ii) upon termination of
employment, the employee's unused vacation leave, unused compensatory leave, and
unused sick leave to the extent not converted to service credit under CaIPERS; and
WHEREAS, pursuant to the IAFF MOU, the APOA MOU, the APMA MOU and
the AFCA MOU, the City has prepared drafts of restatements of the Plan and the Trust
so that (i) the Plan and Trust can serve as the supplemental retirement plan
contemplated by these MOUs, (ii) the employees of the City who are members of the
APOA, the APMA and the AFCA can participate in the Plan and the Trust, as required
by these MOUs, in addition to the employees of the City who are members of the IAFF,
and (iii) the plan reflects the reduced contribution amount for the employees who are
subject to the IAFF MOU; and
WHEREAS, the drafts of the restatements of the Plan and the Trust have been
reviewed and approved by the IAFF, the APOA, the APMA and the AFCA; and
WHEREAS, pursuant to the Plan and the APOA MOU, the APMA MOU and the
AFCA MOU, the City desires to "pick up" the employee contributions to the Plan by the
employees of the City who are members of the APOA, the APMA or the AFCA as
permitted by Code section 414(h)(2) such that the employee contributions will be
treated as employer contributions rather than employee contributions for income tax
purposes; and
WHEREAS, neither the City nor the Plan will permit a participant to have a cash
or deferred election right with respect to these employee contributions or to receive the
contributed amounts directly instead of having them paid by the City to the Plan; and
WHEREAS, the Internal Revenue Service (IRS) issued Revenue Ruling 2006 -43
requiring that all employers take formal action to provide that the contributions on behalf
of the employees, although designated as employee contributions, are being paid by the
employer in lieu of employee contributions; and
WHEREAS, the City now wishes to take the formal action required to "pick up"
the employee contributions to the Plan by the employees of the City who are members
of the APOA, the APMA or the AFCA pursuant to Code section 414(h)(2) as interpreted
by the IRS; and
WHEREAS, pursuant to the Trust, the City appointed the initial trustees of the
Trust after consultation with the Pension Investment Committee appointed by the IAFF
under the Plan; and
WHEREAS, the City and the Pension Investment Committee wish to appoint the
following individuals as trustees of the Trust: (i) the City's Finance Director, (ii) the
City's Human Resources Director, (iii) the President of the IAFF, (iv) the President of the
APOA, (v) the President of the APMA, and (vi) the President of the AFCA.
NOW, THEREFORE, BE IT RESOLVED that the City approves the restatements
of the Plan and the Trust in substantially the same forms as presented to the City
Council; and
BE IT FURTHER RESOLVED that the City authorizes the Interim City Manager
to execute the restatements of the Plan and the Trust in substantially the same forms as
presented to the City Council on behalf of the City; and
BE IT FURTHER RESOLVED that the City approves the "pick-up" by the City of
the employee contributions to the Plan by the employees of the City who are members
of the APOA, the APMA or the AFCA as permitted by Code section 414(h) (2),
recognizing that (i) the contributions, although designated as employee contributions,
are being paid by the City as the employer in lieu of contributions by the employees, (ii)
the employees shall not have a cash or deferred election right with respect to these
employee contributions, (iii) the employees shall not have a right to receive the
contributed amounts directly instead of having them paid by the City to the Plan, and (iv)
the contributions will be treated as employer contributions for federal income tax
purposes; and
BE IT FURTHER RESOLVED that the City authorizes the Interim City Manager
to appoint the following individuals as trustees of the Trust: (i) the City's Finance
Director, (ii) the City's Human Resources Director, (iii) the President of the IAFF, (iv) the
President of the APOA, (v) the President of the APMA, and (vi) the President of the
AFCA; and
BE IT FURTHER RESOLVED that the City authorizes the Interim City Manager
to execute such other documents and to perform such other acts as are necessary or
appropriate to effectuate the foregoing, including, but not limited, to adopting any
amendments as may be necessary or appropriate to update the Plan or the Trust for
any applicable changes in the Code section 401(a) or 501(a) qualification requirements.
I, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the Council of the City of Alameda in a regular
meeting assembled on the 15th day of December, 2015, by the following vote to wit:
AYES: Councilmembers Daysog, Ezzy Ashcraft, Matarrese, Oddie
and Mayor Spencer — 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the seal of
said City this 16th day of December, 2015.
Lara Weisiger, City *rk
City of Alameda
i C. Kern, City ttorney
City of Alameda