City of Milwaukee - File #: 111058

• File #: 111058
• Version: 2
• Type: Charter Ordinance
• Status: Passed
• File created: 11/30/2011
• In control: FINANCE & PERSONNEL COMMITTEE
• Final action: 12/20/2011
• Effective date: 3/13/2012
• Title: A substitute charter ordinance providing for non-spousal beneficiary rollovers under the Pension Protection Act of 2006 and the Worker, Retiree and Employer Recovery Act of 2008.
• Sponsors: THE CHAIR
• Indexes: RETIREMENT BENEFITS

Date	Ver.	Action By	Action	Result	Tally
1/11/2012	2	CITY CLERK	PUBLISHED
12/27/2011	2	MAYOR	SIGNED
12/20/2011	2	COMMON COUNCIL	PASSED	Pass	15:0
12/14/2011	2	CITY CLERK	DRAFT SUBMITTED
12/14/2011	1	FINANCE & PERSONNEL COMMITTEE	AMENDED; Minutes note: Individual appearing: Ellen Tangen, City Attorney's Office The ordinance is amended to change the language in section 2b-3-g from "Roth individual retirement account" to "Roth IRA".	Pass	5:0
12/14/2011	2	FINANCE & PERSONNEL COMMITTEE	RECOMMENDED FOR PASSAGE	Pass	5:0
12/12/2011	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
11/30/2011	0	COMMON COUNCIL	ASSIGNED TO

Number
111058
Version
SUBSTITUTE 2
Reference
031148
091068
Sponsor
THE CHAIR
Title
A substitute charter ordinance providing for non-spousal beneficiary rollovers under the Pension Protection Act of 2006 and the Worker, Retiree and Employer Recovery Act of 2008.
Sections
36-10-2 rc
36-10-3 rc
Analysis
This charter repeals and recreates provisions relating to pension rollover distributions. The changes are required under the Pension Protection Act of 2006 and the Workers Retirement and the Worker, Retiree, and Employer Recovery Act of 2008.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:

Part 1: Section 36-10-2 and 3 of the city charter is repealed and recreated to read:

36-10. Exemption from Taxation, Execution and Assignment.
2. a. Nothwithstanding sub. 1, and for purposes of compliance with section 401(a)(31) of the Internal Revenue Code, this section applies notwithstanding any contrary provision or retirement law that would otherwise limit an election by a distributee, as defined in par. b, to make a rollover. A distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
b. For purposes of this subsection:
b-1. "Direct rollover" means a payment by the plan to the eligible retirement plan specified by the distributee.
b-2. “Distributee” means a member. It also includes the member’s surviving spouse. Effective January 1, 2010, a distributee further includes a nonspouse beneficiary who is a designated beneficiary as defined by section 401(a)(9)(E) of the Internal Revenue Code. However, a nonspouse beneficiary may only make a direct rollover to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an "inherited" individual...