SUBJECT/RECOMMENDATION:
Title
Adopt Ordinance 8607-14 on second reading, amending the provisions of Chapter 2, Article V., Division 3., Code of Ordinances to comply with Section 401(a)(31)(B) of the Internal Revenue Code.
Body
SUMMARY:
Internal Revenue Regulations require two amendments to the Clearwater Employee Pension Ordinance.
The changes to Section 2.398 and restated in Section 2.424 (Time and Manner of Payment) requires the Plan Administrator to deposit any lump sum payout exceeding $1000 into an individual retirement plan designated by a trustee should the distribute not make an election otherwise.
The changes to Section 2.393 and restated in Section 2.412 add additional language to the definition for compensation to include severance payments and overtime.