InSight Employee Benefit Communications (Plan Administrator) Representative

Rick Rodgers, AIFA

 

Awards Received by the Plan

2010 - Leadership Recognition Award for Outstanding Achievement in Effective Communication for "Understanding and Navigating Volatile Markets"

2009 - Leadership Recognition Award for Outstanding Achievement in Plan Design & Administration for "Retirement Class Target Date Portfolios"

2009 - Leadership Recognition Award for Outstanding Achievement in Effective Communication for "Understanding and Navigating Volatile Markets Participant Education Program"

2008 - Leadership Recognition Award for Outstanding Achievement in Effective Communication for "Retirement Ready Workshops"

2006 - 1st Place, Pensions & Investments Investment Education "Eddy" Awards

2005 - Leadership Recognition Award for Outstanding Achievement in Effective Communication for Custom Plan Information and Investing Guides

 

Retirement Plan Info and Forms (PDF)

Retirement Plan Distribution - Direct Rollover Package

In-Service Distribution Package

QDRO Package | Summary of Procedures

Disability Summary of Procedures

Retired Public Safety Officer Insurance Payment Authorization Package

Summary Plan Description (SPD)

Entire Trust Agreement (Plan Document)

Retirement Budget Worksheet

_________________________________________________________________

Qualified Domestic Relations Order (QDRO) Summary of Procedures

Overview

Distribution of any portion of the vested account balance of any Participant under the Money Purchase Pension Plan and Trust Agreement of the Police Department of the City of Aurora (MPPP) to his or her spouse pursuant to a Participant's dissolution of marriage, legal separation, or declaration of invalidity of marriage is subject to the requirements of applicable Colorado State Statutes and Internal Revenue Code, and to the requirements of these Rules, Regulations and Procedures. Amounts distributed to a Participant’s spouse may be paid in cash or rolled-over into an IRA. Although cash payments are generally taxable as ordinary income, they are exempt from the 10% early withdrawal penalty even when distribution occurs prior to age 59½.

EXTREMELY IMPORTANT

The rules, regulations and procedures for a domestic relations order pertaining to a retirement plan covering public employees in Colorado, such as the MPPP, are unique and very specific. Governmental Plans are exempt from QDRO provisions provided in the Employee Retirement Income Security Act (ERISA), which typically governs retirement plans for private-sector employees. Therefore, both parties, and/or their respective attorneys, must adhere to the process, and use only the forms provided by the MPPP. Every QDRO must be reviewed and approved by the MPPP Trustees and the MPPP’s legal counsel prior to distribution. Legal and administrative expenses incurred by the MPPP in association with a QDRO are paid directly from the Participant’s account prior to the distribution to a spouse. Please note that the administrative fees charged to process the QDRO (including legal expenses incurred by the Plan) will be deducted from the participant’s account prior to distributing funds to the Alternate Payee.

Summary of the QDRO Process

1. Both parties and/or their respective attorneys work with the Plan’s Administrator, which is responsible for monitoring each step of the QDRO process. The Administrator’s contact information:

1. City of Aurora Police MPPP
   ATTN: Rick Rodgers
   4643 S. Ulster Street, Suite 800
   Denver, CO 80237
   (303) 221-5900

2. Both parties and/or their respective attorneys request QDRO package from MPPP, which includes detailed procedures, appropriate forms and rollover information.

3. (Recommended) Participant and the alternate payee, and/or their attorneys, request a copy of the Rules from the Trustees or the Plan's Administrator as soon as possible (either before or after they initiate their domestic relations legal proceedings) and that a draft of the QDRO (Exhibit A of QDRO package) and a draft of the Distribution Election for Alternate Payee (Exhibit B of QDRO package), and copies of the marital or separation agreement and decree be submitted to the MPPP Administrator (City of Aurora-Police MPPP, 4643 S. Ulster Street, Suite 800, Denver, CO 80237) for approval as to form and content by the Plan’s attorneys, prior to execution and/or presentation of the QDRO to the Court.

1. The Plan’s attorneys will provide written approval or specific explanation of basis for rejection, within thirty (30) days of receipt of the documents described above.

4. Within ninety (90) days after entry of Decree and Permanent Orders regarding property distribution in the divorce proceedings, the parties must submit to the MPPP Trustees or the Plan’s attorneys:

1. A copy of the written marital agreement, or written separation agreement, entered into by the Participant and Alternate Payee, which provides for the division of the Participant’s vested account balance under the Plan.

2. A copy of the Court Order approving the agreement described in 3(a).

3. An original copy of the QDRO (Exhibit A of MPPP QDRO package), which is approved by the Court and certified by the Court Clerk.

4. An original copy of the Distribution Election for Alternate Payee (Exhibit B of MPPP QDRO package), which is properly completed, signed and notarized.

5. Following receipt of all properly completed and executed documents described in section 3 (above) a final review is conducted by the Plan’s attorneys, which provides written approval and distribution instructions, or an explanation of procedures to correct any errors.

6. Distributions to an Alternate Payee may not be processed in less than thirty (30) days from the receipt of the properly completed and executed documents described in section 3 (above). Legal and administrative expenses incurred by the MPPP in association with a QDRO are paid directly from the Participant’s account prior to distribution to the Alternate Payee.

IMPORTANT: Any delay in the submission of any of the items referenced above will result in a delay in the approval and actual distribution to the Alternate Payee of the QDRO amount; therefore, it is recommended that the Participant, his or her spouse, and/or their respective attorneys submit all of these documents to the Trustees or the plan’s attorneys as soon as possible after a divorce proceeding is initiated.

Understanding the Terms

Plan – The Money Purchase Pension Plan and Trust Agreement of the Police Dep artment of the City of Aurora (also referred to a MPPP).

Participant – The person who maintains a MPPP retirement account.

Alternate Payee – The person who is the spouse of the P articipant.

Divorce – Dissolution of Marriage, Legal Separation, or Declaration of Invalidity of Marriage.

QDRO – Qualified Domestic Relations Order as provided for under the MPPP.

Trustees – The Board of Trustees and Plan Administration Committee of the Money Purchase Pension Plan and Trust Agreement of the Police Department of the City of Aurora (MPPP).

_________________________________________________________________________________

Disability Retirement – Permanent Occupational and Total Disabilities Only

Summary of Rules, Regulations and Procedures

Overview

Active participants in the City of Aurora-Police Money Purchase Pension Plan (MPPP) who become disabled are eligible for disability benefits provided through the Statewide Death and Disability Plan, administered by the Fire and Police Pension Association (FPPA). These benefits are offset (reduced) based upon the balance of your MPPP retirement account. In other words, a portion of the benefit is funded by your retirement account, and the remainder is paid from the FPPA Statewide Death and Disability Plan.

Step-by-step Summary of the Process

1. FPPA approves your eligibility for disability benefits and determines the total benefit amount, based upon the type of disability and your current base salary.

2. The MPPP is instructed to provide your account balance as of the effective date of your disabled status to the FPPA. This excludes amounts rolled over from other retirement plans and mandatory contributions in excess of 16 percent.

3. The offset amount, which is the portion of your disability benefit funded by your retirement account, is calculated by FPPA using a formula that considers your current age, life expectancy, disability type, and account balance.

1. For example, if the total benefit is determined to be $2,000 monthly, and the current value of your MPPP account could provide a lifetime benefit of $700 monthly, then your FPPA benefit would be $1,300.

4. The Participant provides the MPPP with a copy of the FPPA offset amount and benefit calculations, along with documentation describing whether the disability resulted from an on-duty or off-duty injury or disease.

1. On-Duty Disability – These benefits are exempt from federal and state income taxes and may not be held in a tax-deferred retirement account (such as MPPP); therefore, the Participant must also complete a MPPP Distribution form, indicating a lump-sum distribution. Upon receipt of the offset distribution the Participant may invest it or spend it. The benefit to you is that you won’t pay taxes or have penalties on the distribution. The amount (if any) that is over and above the offset may be rolled over to an IRA.

2. Off-Duty Disability – These distributions are subject to ordinary income tax and may remain in a tax-differed retirement account (such as MPP), or rolled-over to an IRA. The Participant must also complete a MPPP Distribution form, and may choose to receive installment distributions, a p artial-sum distribution, a lump-sum distribution, or postpone distribution until a future date.

5. The MPPP’s attorneys must review and confirm FPPA’s calculations prior to approving a distribution from the retirement plan, which is conducted within twenty (20) days of receipt of the documents described in section 4 (above). The MPPP attorneys provide you with an opinion letter for your records that states the offset amount is exempt from income taxes. Additionally, the MPPP attorneys provide written instructions to MPPP’s custodian regarding distribution and income tax withholding. IMPORTANT: The legal costs incurred during this process are paid by the participant before the distribution is made.

6. Upon MPPP’s receipt of the attorney’s approval and instructions, the distribution request is forwarded to the Plan’s record-keeper and custodian for distribution instructions.

 

Home | Participant Login | Plan Info | Investment Info | News | Contact Us | Site Map

copyright 2011 aurora-police mppp. all rights reserved.