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Home My WebLink About1040_OMRF_Defining SpouseAN URDINANCt yr Imt CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 1040 AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM, DEFINED BENEFIT PLAN OF THE CITY OF OWASSO, OKLAHOMA, TO INCORPORATE THE DEFINITION OF SPOUSE; PROVIDING FOR EFFECTIVE DATE, PROVIDING FOR REPEALER AND SEVERABILITY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: Section 1. AMENDATORY. The Employee Retirement System, Defined Benefit Plan of the City of Owasso, is hereby amended, which is incorporated herein by reference. Pursuant to the authority vested in the undersigned, Subsection 2.1 (mm) of the Oklahoma Municipal Retirement Fund Master Defined Benefit Pion (the "Plan ") is hereby amended to read as follows and to renumber the current Subsection (mm) and the subsequent Subsections accordingly: "(mm) Spouse: Effective as of June 26, 2013 and in accordance with Revenue Ruling 2013 -17 and IRS Notice 2014 -19, for Federal tax purposes which may apply to qualified retirement plans under Code Section 401(a), the terms 'spouse,' 'husband,' and 'wife' include an individual married to a person of the same sex if the individuals are lawfully married under state law, and the term "marriage" includes such marriage between individuals of the some sex, and a marriage of same -sex individuals that was validly entered into in a state whose laws authorize the marriage of two individuals of the some sex even if the married couple is domiciled in a state that does not recognize the validity of same -sex marriages. For all other Plan purposes and which are not required for Federal tax purposes as described in the preceding sentence, the term 'spouse' will be defined as a spouse which is legally recognized in the State of Oklahoma." Except as otherwise provided in this Windsor Amendment to the Oklahoma Municipal Retirement Fund Master Defined Benefit Plan ( "Amendment "), the Plan is hereby ratified and confirmed in all respects. This Amendment shall be effective as of June 26, 2013. Section 2. REPEALER. All ordinances in conflict herewith are hereby repealed. Section 3, SEVERABILITY. If any part, article, section, or subsection of this ordinance shall be held invalid or unconstitutional for any reason, such holding shall not be construed to impair or invalidate the remainder of this ordinance, notwithstanding such holding. Tulsa County Clerk - PAT KEY Doc # 2014107318 Page(s): 2 Recorded 12/01/2014 at 01;06 PM kcgxon' Receipt # 606391 Fee $16.00 AN URDINANCt yr Imt CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 1040 AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM, DEFINED BENEFIT PLAN OF THE CITY OF OWASSO, OKLAHOMA, TO INCORPORATE THE DEFINITION OF SPOUSE; PROVIDING FOR EFFECTIVE DATE, PROVIDING FOR REPEALER AND SEVERABILITY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: Section 1. AMENDATORY. The Employee Retirement System, Defined Benefit Plan of the City of Owasso, is hereby amended, which is incorporated herein by reference. Pursuant to the authority vested in the undersigned, Subsection 2.1 (mm) of the Oklahoma Municipal Retirement Fund Master Defined Benefit Pion (the "Plan ") is hereby amended to read as follows and to renumber the current Subsection (mm) and the subsequent Subsections accordingly: "(mm) Spouse: Effective as of June 26, 2013 and in accordance with Revenue Ruling 2013 -17 and IRS Notice 2014 -19, for Federal tax purposes which may apply to qualified retirement plans under Code Section 401(a), the terms 'spouse,' 'husband,' and 'wife' include an individual married to a person of the same sex if the individuals are lawfully married under state law, and the term "marriage" includes such marriage between individuals of the some sex, and a marriage of same -sex individuals that was validly entered into in a state whose laws authorize the marriage of two individuals of the some sex even if the married couple is domiciled in a state that does not recognize the validity of same -sex marriages. For all other Plan purposes and which are not required for Federal tax purposes as described in the preceding sentence, the term 'spouse' will be defined as a spouse which is legally recognized in the State of Oklahoma." Except as otherwise provided in this Windsor Amendment to the Oklahoma Municipal Retirement Fund Master Defined Benefit Plan ( "Amendment "), the Plan is hereby ratified and confirmed in all respects. This Amendment shall be effective as of June 26, 2013. Section 2. REPEALER. All ordinances in conflict herewith are hereby repealed. Section 3, SEVERABILITY. If any part, article, section, or subsection of this ordinance shall be held invalid or unconstitutional for any reason, such holding shall not be construed to impair or invalidate the remainder of this ordinance, notwithstanding such holding. The foregoing ordinance was introduced before the City of Owasso City Council on the Jk day of November, 2014, and was duly adopted and approved by the Mayor and City Council of the City of Owasso on the )�+hday of November, 2014, after compliance with notice requirements of the Open Meeting Law (25 OSA, Sections 301, et seq.). n�F�I�TZ -Z ATTEST: Sherry Bishof, City Clerk i L. o' — - :� ••- • • , Approved as to form and legality on the I day of November, 2014. J e Lombardi, City Attorney PUBLISHER'S AFFIDAVIT NO.�,f.�rttls PUBLICATION DATE(S) 12/11/14 CASE NUMBER: ORD NO. 1040 AD NO: 00190837 LEGAL NOTICE STATE OF OKLAHOMA COUNTY OF Tulsa ) SS I, of lawful age, being duly sworn, am a legal representative of Owasso Reporter of Owasso, Oklahoma, a weekly newspaper of general circulation in Tulsa, Oklahoma, a newspaper quali- fied to publish legal notices, advertisements and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1982 as amended, and thereafter, and complies with all other requirements of the laws of Oklahoma with reference to legal publications. That said notice, a true copy of which is attached hereto was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the ABOVE LISTED DATE(S) Representative S ature Subscribed to and sworn to me this 12th day of December, 2014. Notary Public ( fancy Carol Moore My commission number: 06011684 My commission expires: December 8, 2018 Customer #: 00000779 Customer: CITY OF OWASSO ��`�� Publisher's Fee: 95.20 e n �.`??G :y pV ,�O , �¢ e=oc eG. 0 ,, No.08011884 : T° ' IMP. 1210BJ2018 IN AND FOR Op ny pIA�J,f �`'y��py 1 0 r,0 _ j, 190837 Published In the Owasso Reporter, Owasso. Tulsa County, Oklahoma, December 11, 2014. AN ORDINANCE OFTHE CRY OF OWASSO, OKLAHOMA ORDINANCE NO. 1G40 AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM, DEFINED BENEFIT PLAN OF THE CITY OF OWASSO, OKLAHOMA TO INCORPORATE THE DEFINITION OF SPOUSE; PROVIDING FOR EFFECTIVE DATE, PROVIDING FOR REPEAL. ER AND SEVERABILITY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: Section 1. AMENDATORY. The Employee Retirement System, Defined Benefit Plan W the City of Owasso, Is hereby amended, which Is incorporated herein by reference. Pursuant to the authority wasted In the undersigned, Subsection 2.1(mm) of the Oklahoma Muncipal Retirement Fund Master Defined Bereft Plan Bhe'Plalr) Is hereby emended to reed as fol- lows and to renumber the current Subsection (mm) and the subse- quent Subsections accordingV. '(mm) Spouse: Effective as of June 26, 2013 and in wxor- dame with Revenue Ruling 2013 -17 and IRS Notice 2014-19, for Federal tax purposes which May applyto qualified retirement plans under Code Section 401(a), the terms' spouse,'husband; and %,*' Include an IndMdual married to a person of the same a" If the Individuals are lawfully married under state law, and the tend 'marrlage" Includes such marriage between individuals of the same sex, and a marriage of same -sax individuals that was validly entered Into in a state whose laws authorize the marriage of two Indvidurs of the same sax even g the married couple is domiciled in a state that does not recognize the valid - ity of same -sex marriages. Far all other Plan purposes and which are not required for Federal tax purposes as described In the preceding sentence, the tam 'spotise' will be defined as a spouse which is legally recognized in the State of Oklahoma" Except as otherwise provided in this Windsor Amendment to the Oklahoma Municipal Retirement Fund Master Defined Benefit Plan ( "Amendmenn, the Plan Is hereby ratified and confirmed N all respects. This Amendment shall be effective as of June 26, 2013. Section 2. REPEALER. All ordinances In conflict herewith are hereby repealed. Section S. SEVERABILTTY. If any pad, article, section, or subsec- tion of this ordinance shall be held Invalid or unconstitutional for any reason, such holding shall not be construed to Impair or Invalidate the remainder of this ordinance, notwithstanding such holding. The foregoing ordinance duly adopted and approved by the Mayor and City Council of the City of Owasso on the 18th day of November, 2014, after compliance with notice requirements of the Open Meeting Law (25 OSA, Sections 301, at seq.). /s /Jeri Moberly, Mayor ATTEST: /a/ Sherry Bishop, City Clerk APPROVED ASTO FORM AND LEGALITY: /s/Julle Lombardi, City Attorney - ___- - -- The Cify Wii out Limits. TO: The Honorable Mayor and City Council City of Owasso FROM: Michele Dempster Human Resources Director SUBJECT: OMRF Plan Update - Ordinance No. 1040 DATE: November 14, 2014 BACKGROUND: ,rot,,, G -&,} Plan updates and amendments for the Oklahoma Municipal Retirement Fund (OMRF), the retirement plan for non - police and fire employees, require approval by the City Council acting as the OMRF Retirement Committee. To keep the City's OMRF Retirement plan in compliance with Internal Revenue Code and /or State Law, any applicable change to the tax code or Federal /State Law must be incorporated into the OMRF plan by ordinance. Internal Revenue Code Revenue Ruling 2013 -17 resulting from the United States vs. Windsor Supreme Court decision necessitates a plan update. The Windsor Amendment addresses domestic partners, federal law and the definition of spouse. The IRS Revenue Ruling requires qualified plans to recognize same sex spouses for Federal tax purposes and would affect the OMRF sections on Required Minimum Distribution Rules and Rollover Rules. In addition, following the 10th Circuit Court of Appeals mandate to lift the stay that was previously in place regarding same sex marriages in Oklahoma, the City is additionally legally obligated to recognize same -sex marriages for Joint & Survivor and Death Benefits as well as for Federal taxation purposes. Failure to pass the plan amendment could deem the City's plan out of compliance with the Internal Revenue Code and State law. The consequence could be as severe as the entire retirement benefit becoming taxable income to each of our employees, resulting in an undue tax burden to employees. To maintain compliance with IRS and State law, Ordinance No. 1040 amends the City's OMRF Defined Benefit plan to accomplish the following: • Comply with the Internal Revenue Code and the mandatory Windsor Amendment • Comply with both Federal and State law • Recognize the definition of spouse as defined for Federal purposes (currently recognizing some sex marriages) on Rollover and Required Minimum Distributions rules • Recognize the definition of spouse as defined for State purposes (currently recognizing some sex marriages) on Spousal Death benefits and Joint & Survivor benefits RECOMMENDATION: Staff recommends Council approval of Ordinance No. 1040. ATTACHMENT: OMRF Ordinance No. 1040