City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 8, 2014
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
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Consideration of a Resolution to Amend and Restate the City of Alexandria Pension Plan for Firefighters and Police Officers (Closed Plan). [ROLL-CALL VOTE]
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ISSUE: Consideration of the proposed amendment to the City of Alexandria Pension Plan for Firefighters and Police Officers (the "Plan").
RECOMMENDATION: That City Council adopt the attached resolution (Attachment 1) which amends and restates the City of Alexandria Pension Plan for Firefighters and Police Officers. Below are the reasons these changes are necessary.
* To make technical corrections that add, delete, or modify the Plan Document language to clarify the Plan administration and to comply with Internal Revenue Service ("IRS") regulatory requirements;
* To restate the Plan Document to combine the January 1, 2009 Restatement and the subsequent amendments into one document;
These changes, which are recommended at this time, make no change to benefits, contributions, or eligibility and are cost neutral to the City.
BACKGROUND: The Plan, a defined benefit plan, provides both retirement and disability benefits to firefighters and police officers. The Plan was closed to new employees hired after February 12, 1979, when the City of Alexandria Retirement Income Plan (the "Retirement Income Plan"), a defined contribution plan, was created. There are no active employees and 124 retired employees participating in this plan. A defined contribution plan links benefits to employer contributions and investment return while a defined benefit plan links benefits to the employee's salary and years of service.
The Plan was last restated at the December 9, 2008 City Council meeting and took effect on January 1, 2...
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