City of Milwaukee - File #: 051174

• File #: 051174
• Version: 1
• Type: Charter Ordinance
• Status: Passed
• File created: 12/13/2005
• In control: FINANCE & PERSONNEL COMMITTEE
• Final action: 1/18/2006
• Effective date: 4/5/2006
• Title: A substitute charter ordinance relating to automatic rollover of certain retirement benefits as required by the Internal Revenue Code.
• Sponsors: THE CHAIR
• Indexes: CHARTER ORDINANCES, RETIREMENT BENEFITS, WAGES AND BENEFITS

Date	Ver.	Action By	Action	Result	Tally
2/3/2006	1	CITY CLERK	PUBLISHED
1/26/2006	1	MAYOR	SIGNED
1/18/2006	1	COMMON COUNCIL	PASSED	Pass	15:0
1/11/2006	1	FINANCE & PERSONNEL COMMITTEE	RECOMMENDED FOR PASSAGE	Pass	5:0
1/9/2006	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
1/6/2006	1	CITY CLERK	DRAFT SUBMITTED
12/27/2005	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
12/15/2005	0	FINANCE & PERSONNEL COMMITTEE	REFERRED TO
12/15/2005	0	FINANCE & PERSONNEL COMMITTEE	REFERRED TO
12/13/2005	0	COMMON COUNCIL	ASSIGNED TO

Number
051174
Version
SUBSTITUTE 1
Reference

Sponsor
THE CHAIR

Title
A substitute charter ordinance relating to automatic rollover of certain retirement benefits as required by the Internal Revenue Code.
Section
36-10-2 am
Analysis
The new automatic rollover provisions imposed by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) require that any mandatory distribution from a qualified pension plan in an amount in excess of $1,000 must be automatically rolled over by the plan to a qualified retirement account if the person to whom the distribution is made fails to elect either to have the amount paid in a direct rollover, or receive the distribution directly. These rollover provisions are imposed upon qualified plans pursuant to section 401(a)(31)(B) of the Internal Revenue Code that applies to governmental plans such as the city of Milwaukee employes’ retirement system.

The effective date of this new law applies to distributions that are made after the close of the first regular legislative session of the legislative body with the authority to amend the plan that begins on or after January 18, 2006. Accordingly, this new law will apply to distributions made after the regular meeting of the common council on January 18, 2006.

This charter ordinance amends chapter 36 to implement the Internal Revenue Code requirements for automatic rollovers of mandatory distributions.

Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:

Part 1. Section 36-10-2 of the charter is amended to read:
36-10. Exemption from Taxation, Execution and Assignment.
2. Notwithstanding sub. 1., a beneficiary who was a member may elect to have a taxable distribution except: annuities paid over life or life expectancy; installments for a period spanning 10 years or more; and minimum distributions under s. 401(a)(9) of the Internal Revenue Code; paid directly to an individual retirement account or bona fide defined contri...