20778 1 ORDINANCE NO. 20,778
2
3 AN ORDINANCE TO ADOPT A CITY OF LITTLE ROCK NON-
4 UNIFORM EMPLOYEES DEFINED BENEFIT PENSION PLAN
5 AND TRUST; TO ADOPT AN AMENDED NON-UNIFORM
6 EMPLOYEES DEFINED CONTRIBUTION PLAN; AND FOR
7 OTHER PURPOSES.
8
9 WHEREAS,pursuant to Little Rock, Ark. Res.No. 13,663 (March 19, 2013), the Board of Directors
10 authorized work by City staff and outside consultants to develop all necessary documents to implement a
11 new pension plan for non-uniform employees of the City, to be effective January 1, 2014 because the
12 existing defined contribution pension plan does not adequately provide benefits for long-term employees;
13 and,
14 WHEREAS, to adequately provide retirement benefits for full-time long-term employees, it is
15 proposed that the new defined benefit plan, as well as the defined contribution plan, provide for employee
16 contributions; and,
17 WHEREAS, it is desired that such employee contributions be made on a before-tax basis; and,
18 WHEREAS,the work to develop a new pension plan has been accomplished and the Board of Directors
19 desires to move forward to adopt the attached City of Little Rock Non-Uniform Employees Defined
20 Contribution Pension Plan and Trust and to amend the existing City of Little Rock Non-Uniform Employees
21 Pension Plan (the"Defined Contribution Plan")to make the necessary changes in light of the adoption of
22 the new Non-Uniform Employees Defined Benefit Pension Plan and Trust; and,
23 WHEREAS,these changes have been reviewed by the City Manager,the City Attorney,and City staff,
24 and been found to be in compliance with the directives from this Board;
25 NOW,THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
26 OF LITTLE ROCK,ARKANSAS:
27 Section 1. The City of Little Rock Non-Uniform Employees Defined Benefit Pension Plan and Trust
28 is hereby adopted, effective January 1, 2014, using the specifications attached as Exhibits A and B to this
29 Ordinance.
30 Section 2. The City of Little Rock Non-Uniform Employees Defined Contribution Plan and Trust is
31 hereby amended, effective January 1, 2014, and adopted as amended using the specifications attached as
32 Exhibit C to this Ordinance.
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1 Section 3. The employees eligible to participate in the new Defined Benefit Pension Plan shall agree
2 to reduce eligible compensation as set forth in the attached specifications, beginning with the pay period
3 beginning December 28,2013,which is to be paid after January 1, 2014.
4 Section 4. The City of Little Rock will assume the obligation to pay the amounts deducted from such
5 employees' pay and shall contribute such amounts to such employees' retirement plan.
6 Section 5. Such amounts are intended to be"picked up"by the City of Little Rock and thus are intended
7 to be nontaxable to employees for federal and state income tax purposes. The term"picked up" is used in
8 reference to the Internal Revenue Code that provides that for any plan established by a governmental unit,
9 where the contributions of employing units are designated employee contributions, but the employer
10 actually contributes("picks up")such amounts,the contributions are treated as employer contributions and
11 thus can be nontaxable for the employee.
12 Section 6. Severability. In the event any section, subsection, subdivision, paragraph, subparagraph,
13 item, sentence, clause, phrase, or word of this ordinance is declared or adjudged to be invalid or
14 unconstitutional, such declaration or adjudication shall not affect the remaining provisions of this
15 ordinance, as if such invalid or unconstitutional provision were not originally a part of this ordinance.
16 Section 7. Repealer. All ordinances, resolutions, bylaws, and other matters inconsistent with this
17 ordinance are hereby repealed to the extent of such inconsistency.
18 PASSED: August 27,2013
19 ATTEST: APPROVE
20
21 f,, �
22 Toya lJbinson,Assis t City Clerk Mark Stodola, ayor
23 APPROVED AS TO LEGAL FORM:
25
26 Thomas M. Carpenter,City Attornjy
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